GBP/USD: Healing process for Boris and the pound

GBP/USD has hit the highest in a month amid PM Boris Johnson's discharge from hospital and US dollar weakness. After the OBR published worrying scenarios and markets'volatile week, economic figures are eyed, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The longer the shuttering continues, the worse for the economy. The Office of Budget Responsibility has published a scenario in which GDP plunges by 35% in the second quarter and falls by a total of 13% in 2020. The IMF also released gloomy forecasts.”

“If Boris Johnson returns to addressing the press, his words will carry more weight than any of his peers in government.” 

“Health officials will probably urge extending the shelter-at-place orders while Trump is set to demand a return to normal. State governors, who have the authority, are expected to consider matters carefully and try to balance the economic impact and saving lives.”

“Existing Home Sales figures for March will be of some interest, but weekly Unemployment Claims, as well as Continuing Claims, will likely trigger a more significant reaction. Both numbers are forecast to remain in the millions.”