FX Street analyst Yohay Elam said a surge in unemployment claims in the UK and growing speculation about negative rates could weigh on the pound.
“The number of asylum seekers in April jumped 856,500, much worse than expected. Sterling initially ignored this, but the mood could change. “
“The pound could come under pressure due to growing speculation about negative interest rates. Silvana Tenreyro, an external member of the BoE’s Monetary Policy Committee, appears ready to adopt the policy and said that it had succeeded in the eurozone. ”
“Brexit negotiations hit the wall on Friday and Britain appears to be preparing for a Brexit without a trade deal, announcing a new tariff regime for 2021 – at the end of the transition period.”