While stocks have found their bearings and the greenback is losing ground again, the pound could still trip for reasons related to the United Kingdom, reports Yohay Elam, analyst at FXStreet.
Daily deaths from COVID-19 are once again rising to 545 in Tuesday’s report. The current misery limits the government’s ability to lift the foreclosure, which weighs on the economy. ”
David Frost, London’s chief negotiator, said the EU was treating the UK as an “unworthy partner” trying to bend it to EU standards, offering a poor deal. […] Continuing tensions increase the chances that the UK will emerge from the transition period without a trade agreement, reverting to WTO rules, worrying investors. “
The British CPI fell to 0.8% a year in April, worse than expected. The sharp drop in inflation increases the chances that interest rates will fall below zero. This could weigh on the pound. “