The Pound has lost some ground as the OBR has warned that the economy could contract by 35% in Q2 2020 whilst unemployment could surpass the 2 million mark. In response, Chancellor Sunak said he was ‘deeply troubled’ by their predictions and suggested that they could increase their scope to lend if need be.
The government has also come to an agreement with the Bank of England to use their overdraft facility to borrow billions of Pounds in order to combat the effects of the coronavirus by helping businesses and individuals.
The Bank of France has suggested that retail sales in the country have fallen by 24% for the month of March. However, French finance minister Le Maire has said that 60% of its industrial sector has returned to work even though the country is in strict lockdown until 11th May. The number of coronavirus cases in Germany has risen to its highest since last Thursday. Overall, the Euro remains weak against both the Pound and Dollar.
President Trump has criticised the World Health Organization (WHO) for their approach in dealing with the coronavirus and accused them of attempting to cover up the spread of the virus when it first emerged in China. Trump also said that funding WHO would be suspended for the time being, whilst also suggesting that the country could reopen for business on 1st May which gave the Dollar some support after some recent weakness. US retail sales and industrial production data is due out this afternoon and is likely to cause some volatility. The Dollar has also strengthened due to its safe-haven status as the IMF now forecasts the global economy to shrink by 3% this year.