Market Update

The pound rose slightly against the dollar in early London trading but fell versus the euro as Britain waited for announcements about the furlough scheme and how the UK’s plans to ease lockdown measures will affect the workforce.

At 1130 GMT, the government is expected to announce changes to its employee furlough programme, which is paying the wages of more than 6 million workers at businesses affected by the coronavirus.

The government will also set out details on how to make workplaces safer as businesses start to return to work.

The government in London has come under fire for its strategy for dealing with the pandemic.

Not just the timing of the planned easing measures is attracting criticism; there is also considerable confusion about the extent of these measures.

Versus the dollar, the pound edged up on Tuesday morning, having strengthened slightly overnight, but still down around 2% this month. It was last at $1.2343, up less than 0.1% since New York’s close.

On Sunday, the government began to change its advice about the lockdown, with a televised speech by Prime Minister Boris Johnson, then a 51-page document on Monday detailing the plans, followed by a series of sector-by-sector documents for employers and workers.

A wide range of critics, however, said the details were nebulous and did not help people to know whether they should go back to work, how they would get there and how they could stay safe in the workplace.

Adding to the confusion, the leaders of Scotland, Wales and Northern Ireland made clear they did not share Johnson’s approach and rejected his new core message, “stay alert”, instead sticking to the previous “stay at home” slogan.

The UK has now overtaken Italy as the centre of the coronavirus crisis in Europe, with a death toll of over 30,000.

The market has turned increasingly short on the pound over the last 10 weeks, as concerns over the government’s handling of the coronavirus crisis, which economists say leaves the country facing its worse recession in 300 years, are compounded by the risk of leaving the European Union without a deal at the end of the year.

Britain and the European Union started their penultimate scheduled round of trade talks via teleconferencing on Monday, having made little progress on any major sticking points. The UK insists it will not seek an extension to the transition period.

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and for clients based in the United Kingdom and rest of the world, payment services for Currencies4you are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).For clients based in the European Economic Area, payment services for Currencies4you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). For clients based in the United States, payment services for Currencies4you are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York, NY 10011. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers