GBP/USD: Brexit standstill and dismal Covid-19 data drag sterling down

GBP/USD has been retreating, down -0.5% today, as the dollar gains ground. Brexit concerns and a heavy death coronavirus toll are weighing on the pound, Yohay Elam, an analyst at FXStreet, briefs.

Key quotes 

“Hopes for mutual concessions on fisheries and trade came and went – and so did Brussels' hopes for an intervention by PM Johnson. The lack of progress in the current round of negotiations on future relations – due to end tomorrow – means the risk of the UK falling to World Trade Organization rules is growing, and that is sending sterling lower.”

“Britain's coronavirus deaths are edging closer to 40,000, another grim milestone that pressures the pound. While statistics are falling, the pace is relatively slow.” 

“Racial tensions have somewhat calmed in the US, partially related to Minnesota's move to press charges against three additional police officers that were involved with the murder of George Floyd. Markets have largely ignored the unrest despite its potential impact on the US elections.”