Yesterday in the government’s daily Covid-19 updates from Downing Street, Chancellor Rishi Sunak took to the stage to introduce a financial package designed to keep the UK economy afloat through this period of uncertainty for the country. The headline amount of £330 billion will be made available to UK businesses, who have started to see a downturn in demand as Britain’s is told to stay at home where possible. This package can also be extended if further support is required.
Even with the stimulus, the next question on most traders’ lips is how far can Sterling now fall? Although yesterday’s package managed to halt the fall against the US Dollar and the Euro. At the time of writing, we are currently sub 1.2050 against USD and sub 1.0980 against EUR.
Across the pond, America has now reached 6,000 confirmed cases of coronavirus with every state having at least one case. Washington has announced a $1 trillion package of their own, where they will look to immediately start sending cheques to households. Although the plan needs to be passed through Congress. This package is one of the largest in US history and tops the package which was pulled together during the 2008 financial crisis. Stock markets reacted relatively well to the news, however, it is not enough to see the previous losses eradicated, with what looks likely to be a recession on the horizon with potentially months of uncertainty on the horizon.
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Author: Jack Nicholls, Relationship Manager
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