The UK’s official jobless rate remained the same as that of last month – 3.9% in April, while the claimant count change showed a dramatically higher than expected increase last month. The unemployment rate remained at 3.9% which is better than 4.5% forecast.

The Claimant Count Change came in at 528.9K as against 370K expected and the previous month’s reading was also revised higher to 1032.7K

A possible no-deal Brexit favored GBP especially after the UK and the European Union agreed to intensify post-Brexit talks. It has to be noted that Mr. Johnson insisted he believes the UK has a very nice opportunity of securing a trade deal with the EU by the end of the year,  He said “provided we really focus now and get on and do it” which boosted the strength of GBP.

The Federal bank announced on Monday that it will begin buying individual corporate bonds 85 days after unveiling the purchase policy and after credit market pressure alleviates to a certain extent. The program also known as Secondary Market Corporate Credit Facility will take in up to $250 billion in corporate bonds.

According to columnists, we could be witnessing the crest of a second wave of corona virus in the U.S. in Texas, Arizona, Florida, and California. Fatigue Will Be the Carrier of the Second Corona virus Wave. The biggest risk for a second wave of corona virus infections is that people get tired of doing the right thing. ‘Past pandemics show that second waves can be painful. This news puts pressure on the safe-haven currency.

GBP/USD 4 Hours Chart:

Support: 1.2503 (S1), 1.2403 (S2), 1.2351 (S3).

Resistance: 1.2656 (R1), 1.2707 (R2), 1.2808 (R3).

Economic recovery in UK and Claimant count & unemployment report creates optimism for GBP whereas a risk of the second wave of virus in US creates pessimism for USD. Henceforth we expect a bullish trend for GBP/USD.