GBP/USD: Everything in favour of the pound

GBP/USD is on the rise amid calm from the BOE on the coronavirus crisis while the US dollar is hit after California announced an emergency. Brexit talks continue without any harsh rhetoric, Yohay Elam from FXStreet reports.

Key quotes

“Andrew Bailey, the incoming Governor of the Bank of England is ready to cut interest rates from 0.75% down to 0.10% – but only if necessary. 

“California has declared a state of emergency after the first death due to coronavirus. The economic impact may be severe. While Washington has also stepped up its game with a special budget of around $8 billion, investors seem to assess that it is too little.”

“Talks between the EU and the UK continue in Brussels. Contrary to the harsh rhetoric seen last week, the mood seems calm. Miche Barnier, Chief EU negotiator, said that both sides are making good progress.”