27.04.2020 GBP/USD Daily Analysis

27.04.2020 GBP/USD Daily Analysis

GBP/USD is currently trading at $1.2432 as investors sold the USD safe haven since many countries are announcing gradually lifting the lockdown restrictions and slowly reopening their economies. The USD Index is down by 0.5%. Across the globe, the numbers of new coronavirus cases and deaths have been gradually reducing, hence countries are starting to announce lifting the restrictions. In the UK, Prime Minister Boris Johnson has gone back to work after battling coronavirus and is set to discuss plans of modifying the lockdown before the May 7 deadline but not lifting it just yet. Analysts at Danske Bank said,  “The notable recovery in global equities during the month of April so far hints at some possible significant rebalancing effects in USD. These should be USD negative this time around as investors rebalance hedges on USD assets towards month-end.” Many analysts have said that as economies start to reopen we should see the USD continue to fall because the Fed eased monetary policy more than other central banks.