GBP/USD: Boris bounce may have reached its limits

GBP/USD has been on the rise amid the British public's sigh of relief of Johnson's comeback and dollar weakness. Concerns about the government's handling of the crisis and the extended lockdown may weigh on the pound, FXStreet’s analyst Yohay Elam briefs.

Key quotes 

“GBP/USD has been benefiting from the US dollar's weakness. The safe-haven currency is edging lower, partially fueled by China's better-than-expected trade balance figures.”

“According to the Guardian, Britain missed three opportunities to join an EU scheme to bulk-buy Personal Protective Equipment (PPE), a scandal that may cause pessimism. Markets are mostly worried about the shuttering of the economy, which will likely be extended through May 7, according to the Times. The longer it lasts, the greater the damage.” 

“US President Donald Trump wants to open up the economy soon amid tentative signs of flattening the curve. While the US is also seeing tentative signs of slowing the spread of the virus, return to normal may still be some way off.”