GBP/USD: Brexit more dangerous than coronavirus for the pound

GBP/USD was above 1.32 as growing coronavirus fears weigh on the US dollar while worries about Brexit have limited the upside move, Yohay Elam from FXStreet briefs.

Key quotes

“Bond markets are pricing a massive 75 basis point rate cut by the Federal Reserve on March 18. In the UK, the Bank of England's borrowing cost stands at 0.75%, leaving it limited room to act.” 

“Fears about the spread of the outbreak in the US which is slow to test people and the crash in oil prices are also weighing on sentiment.”

“In the UK, the number of cases reached 273 and three deaths have been reported. The infection in the UK is low and cannot be attributed to the fall pound's inability to extend its gains.”

“Michel Barnier, Chief EU Negotiator, expressed pessimism about reaching a deal on future relations before year-end.”