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Market Update

• Posted by currencies in coronavirus, Currency, EUR, GBP, Prime Minister, Sterling, UK, Uncategorised
• April 8, 2020
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British Prime Minister Boris Johnson spent a second night in intensive care and was in a stable condition after receiving oxygen support for COVID-19 complications while his foreign minister directs the country’s battle against the outbreak.

The markets focus remains on the health of our PM.

Otherwise, the Treasury Select Committee will be taking evidence from senior HMRC officials via video link, updating the economic impact of the pandemic.

Members will be particularly interested in indications as to how the various supportive measures announced by the government over the past few weeks have passed through to businesses and individuals.

Last night, President Trump announced that the US economy would open sooner rather than later, via the use of an expanded virus-testing programme.

The plan is to start in smaller cities not heavily hit by the coronavirus, while the likes of NY would remain shut.

Meanwhile, the EU finance ministers meeting extended into the night and after 16 hours they failed to come to a strategy agreement. Another call is scheduled for tomorrow.

Tonight, the US Fed release the minutes of the March policy meetings. Over the last few weeks, the US central bank has announced a number of policy moves to help support the economy through the current crisis, including cutting interest rates close to zero and unlimited QE.

Today’s minutes may give more insight of the reasoning behind those measures and the Fed’s assessment of the potential impact on the economy of the pandemic. They will also be read for any signs of future actions.