GBP/USD: Heavy below 1.2400 ahead of UK PMI, US data

• GBP/USD bears the burden of broad US dollar strength while waiting for fresh impulse.
• UK plans to issue coronavirus “immunity passports”, Chancellor Sunak includes mid-sized businesses to aid package.
• EU jurisdiction will dominate the British law until full Brexit, warns top UK judges.
• Final reading of the UK’s March PMIs, US jobs report and ISM Non-Manufacturing PMI will be in focus.

Despite the good news for medium-sized UK businesses, GBP/USD remains on the back foot near 1.2370 while heading into the London open on Friday. While the broad US dollar strength, amid coronavirus (COVID-19) crisis, keeps the pair heavy, Cable traders seem to wait for the busy economic docket for fresh direction.

During early Asia, UK Chancellor Rishi Sunak extended the state-backed aid packages to medium-sized firms with turnovers as high as £500 million. On the other hand, Health Secretary Matt Hancock also suggested the idea of issuing certificates to allow people who have built up immunity to the coronavirus to return to normal like, per Business Insider.

The UK politics are also getting hot as the voting to replace the opposition Labour Party leader Jeremy Corbyn closes. Additionally, the top UK judge warns that the British judiciary system will take clues from the European rules unless last Brexit-day.

It should be noted that the coronavirus cases in the were  33,718 as of 08:00 GMT on April 2nd whereas there was a 24% hike in the death toll to 2,921 at the same time. Elsewhere, the Washington Governor extended the stay-at-home order whereas S&P affirmed its US rating at AA+ with expectations of a recovery in 2021.

Market’s risk-tone remains mildly heavy with the US 10-year treasury yields dipping back below 0.60% and most Asian stocks following the footsteps.

Traders will keep eyes on the economic calendar with the final readings of the UK’s March month activity data likely to offer intermediate halts ahead of the US NFP and ISM Non-Manufacturing PMI figures.

Technical analysis

GBP/USD remains capped between 21-day SMA, currently at 1.2265 and 1.2485/95 region comprising March 12 low and March 27 high.