The GBP was under renewed pressure as the UK’s reopening timeline is at risk of being extended by two weeks. According to economists at OCBC Bank, there is perhaps scope to use any near-term reopening setback for the pound to accumulate the GBP on the EUR/GBP and GBP/AUD crosses.
Policymakers are contemplating a delay to the UK's planned reopening on June 21
“The GBP/USD remains broadly static towards the lower end of the recent range.”
“Uncertainties over the reopening continue to weigh at the margins, with the UK government looking to delay the decision by another week to get more evidence. Any disappointment on this front may be short-lived, and present an opportunity to accumulate the GBP on crosses.”
“There is scope for the Bank of England to be the next central bank to lean less dovish, especially in comparison to the Reserve Bank of Australia and the European Central Bank.”
