- Posted by currencies in Bank of England, coronavirus, Sterling, UK, Uncategorised
- March 30, 2020
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Sterling finished last week gaining its biggest surge against The Dollar in over a decade, with the U.S now overtaking Spain, Italy, France & China with over 130,000 confirmed cases to reach mid-1.24. Economic chaos also saw the U.S record it’s biggest ever figures for Jobless Claims, climbing well above 3 million.
Moving forward, further confirmed cases in the U.S would see more USD weakness against major currencies. The concerns for GBP are the fact The UK haven’t yet felt the peak of Covid-19 and expectations are for GBP to weaken once the peak hits.
GBP also had its best week against the EUR since September 2017, closing the week just below 1.12. Over the last few days, Italy & Spain have seen their biggest daily fatalities from Covid-19 which is increasing concerns from investors about whether Europe can contain this virus in the near future.
As mentioned earlier, The UK hasn’t felt the peak of Covid-19 yet, once The UK is at its peak suggestions state GBP/EUR could drop to lows of 1.02 and trade within that area until fatality deaths start to decline.
Monday will see British and EU negotiators hold the first joint committee meeting after trade talks were put on hold due to The Coronavirus. The meeting will take place remotely with Michael Gove sitting in for Boris Johnson. The committee will oversee the implementation and application of The Withdrawal Bill Agreement.