Yesterday, the Government reported the lowest coronavirus deaths since March 30th, showing a definite flattening of the new infection and death curve withing the UK. Unfortunately, as Prime Minister Boris Johnson returned to work following a 3-week layoff after contracting and being hospitalised with the virus, the pressure on the Government to ease lockdown restrictions and reopen the economy is becoming unbearable.
As mentioned in previous articles, the race to leave lockdown is a global one, with currencies such as the Australian and New Zealand dollar benefiting from being the first countries to begin phasing out the restraints on the economy. Companies, politicians and other prominent civil servants have begun to look across the Channel at countries such as Spain and Italy, countries who have suffered far worse than Britain, and are wondering why they can start to reopen but the UK can’t.
Ultimately, for Johnson and the Government, scrutiny will likely come from both sides as, if he eases restrictions too far to restore our “ancient freedoms”, a rise in coronavirus death and infections would put the pound into seriously hot water. Conversely, if lockdown isn’t looking like being lifted again on the next review date of the 7th of May, sterling would likely remain flat before starting to give way to its peers who are beginning to lift restrictions. Essentially – the more countries that ease lockdown from now, the more the awkward tightrope beneath Johnson is wobbled.
Have a great day,
Author: Joshua Haden-Jones, Senior Relationship Manager
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