GBP / USD extended its gains, currently at 1.2586, in an optimistic market climate. The next steps depend on British Prime Minister Boris Johnson who has multiple fronts, as noted by FXStreet analyst Yohay Elam.
Take a look at Yohay Elam’s latest GBP / USD technical analysis
Talks between the EU and the UK continue by video and the current round is expected to end on Friday. Brussels hopes for a spectacular intervention by Johnson, similar to his agreement to allow a customs border between Northern Ireland and the rest of Great Britain. The Prime Minister will meet the President of the European Commission, von der Leyen, later in June. ”
“With the focus on protests in the United States, China’s decision to take more power in Hong Kong and the protests in the city state have disappeared from the headlines. However, Johnson raised his voice against human rights violations in the former colony. This could worsen relations with Beijing, at a time when Britain needs more global partners after Brexit. ”
“Coronavirus statistics have continued to improve in the UK, but the pace remains frustrating and slow. Unlike American leadership, British officials have expressed concern. However, the news can cause dissatisfaction, adding to the anger over the PM adviser’s violation of the lock rules he helped design. This limits the government’s room for maneuver. ”
Protests against racial discrimination have continued in the United States, albeit in a much more peaceful tone. The stock markets heightened the troubles as the United States continued to open. In addition to support from the Fed, investors remain optimistic and sell the US dollar. ”
“The recovery of the world’s largest economy will be tested later on Wednesday with two critical versions. ADP’s non-farm wages in the private sector are expected to post a loss of about nine million jobs, and the ISM non-manufacturing purchasing managers’ index is expected to have increased in May. “