GBP/USD: Brexit and BoE's response to coronavirus hit the pound

GBP/USD has been on the back foot after the BOE pledged to act. Brexit and coronavirus headlines are dominating trading, Yohay Elam from FXStreet reports. 

Key quotes

“The Bank of England has pledged to take ‘all needed steps to protect stability’ – sending the pound back down. GBP/USD is trading close to 2020 lows once again.”

“The final Markit/CIPS UK Manufacturing Purchasing Managers' Index came out at 51.7 points in February, a marginal downgrade and still above the 50-point level – which separates expansion from contraction.” 

“The focus shifts to the ISM Manufacturing PMI in the US, which may reflect fear in America's industry.”

“Post-Brexit talks kick off today with low expectations. In press briefings, EU officials have said that negotiations may break down within several weeks – as both sides have differences on several topics.”

“Johnson has said that coronavirus is the top priority, the same as for markets. Nevertheless, both topics are significant for GBP/USD.”