GBP/USD defends 1.3700 despite coronavirus, Brexit jitters
GBP/USD takes rounds to 1.3710-20 amid a quiet Asian session on Thursday. The pair reversed from February lows, marking the biggest daily gains in two weeks, on the US dollar pullback the previous day. However, the bulls seemed to have lost upside momentum of late amid a lack of major catalysts and cautious sentiment ahead of the European Central Bank (ECB) meeting.
GBP/USD keeps drifting south
GBP/USD entered a sliding mode this week, perhaps after BoE MPC member, Jonathan Haskel said on Monday, that reducing stimulus is not the right option for the foreseeable future. Remember that last week, MPC member Michael Saunders expressed a different view, saying that economic activity has recovered a bit faster than forecast in May and that it may become appropriate fairly soon to withdraw some stimulus. Haskel’s remarks came to weigh on expectations over a sooner action by the BoE, which combined with still elevated bets over a Fed hike in the first months of 2023 kept Cable in a downtrend.