GBP/USD: Here comes the new lows

GBP/USD is leaning lower in choppy trading amid the coronavirus crisis. The UK is readying a lockdown as Brits are flouting social distancing guidelines, FXStreet’s analyst Yohay Elam reports.

Key quotes

“Prime Minister Boris Johnson is now preparing for a forced lockdown and that is already weighing on the pound, as it would further hurt the British economy.”

“US lawmakers in the Senate failed to agree on stimulus measures to help struggling businesses. The disagreements in Washington are weighing on global stocks.” 

“Earlier in the day, falling US yields weighed on the dollar, but the world's reserve currency seems to be enjoying demand as a safe-haven asset.” 

“One thing is clear – volatility is set to remain elevated. Pound/dollar's daily range of nearly 200 pips is relatively modest in comparison to last week but is significantly beyond the pre-crisis levels.”