GBP/USD hits fresh five-months lows under 1.2400

• The pound remains weak against its main European rivals.
• US dollar resumes upside as the recovery in equity prices fades. 

The GBP/USD pair printed a fresh five-month low during the American session at 1.2380. As of writing, was trading slightly above the lows, under pressure. A stronger greenback across the board sent the pair from 1.2520 toward 1.2400. In the last minutes, cable lost more than 70 pips quickly as volatility soars. 

Wall Street trims gains, GBP weakens 

After an opening with gains of more than 4%, the Dow Jones was up just 0.80%. The move off highs boosted the US dollar across the board. The DXY hit a new two week high above 98.30; it is rising for the fourth consecutive day. 

In the US, reports indicate President Trump will declare a national emergency because of coronavirus, a measure that would clear the way to more federal spending. Coronavirus panic continues to drive markets. 

The pound usually lags during risk aversion periods and outperforms on risk appetite. On Friday, it remained steady despite the sharp rebound in equity markets. It held steady after the Bank of England released the minutes of the recent meeting when it decided to lower by 50bps the key rate. The decision was unanimous, and the BoE said it could lower rates even more if needed. 

Technical levels