The rates continue within a weak downtrend, with a wide range. Safe assets are by far the most interesting due to the coronavirus pandemic and its impact on the world economy. In addition, Brexit is still one of the factors for the pound, which may grow in importance. At the moment negotiations on a trade deal are far from over, although both sides of the negotiations and investors remains optimistic. Most analysts also forecast a rise in the pound by the end of the year, when a trade deal must be concluded or at least the transition period for the UK is extended. It will not be so difficult to strengthen against the franc if the situation with the coronavirus doesn't worsen and does not get out of control. We cannot rule out the scenario of a continuation of the trend, but for now we observe a loss in a downward momentum.
This week, despite a record increase in the incidence of Covid-19 cases in the US, the market turned positive after the publication of a series of macroeconomic reports on the economies of China, the US, and the EU. All of them were positive, which put pressure on safe assets. Against this background, the GDP report for the first quarter in the United Kingdom, which turned out to be disappointing, did not affect the situation: the pound remained at the current level. Most technical analysis tools tend to the deals to BUY, as we believe will be effective in the medium term. At the same time, we cannot see any signs of a trend reversal. Like most analysts, we expect growth of up to 3%, which will lead to the formation of a flat trend.
