The EU has drafted a post-Brexit trade agreement, which was sent to the 27 member states late last week. It is expected that the UK will reject most of the agreement due to the references to EU law within the draft.
UK manufacturing exports are now at a 3-year low, with many EU customers looking at different suppliers. The Pound has continued to weaken against both the Euro and Dollar.
Italy has confirmed that the peak of its virus outbreak hasn’t been reached as of yet, with Prime Minister Conte suggesting that the current measures are not sufficient enough in helping support businesses. The European Commission has forecasted that the effects of the coronavirus could push the EU into a recession. As a result, the Euro has weakened against a stronger Dollar. EU finance ministers will meet today to discuss stepping up their response to the virus in coordination with each other.
The Federal Reserve has cut interest rates by 100 basis points to a headline rate of 0.25%, and announced a stimulus package worth $700bn that will include the start of their quantitative easing programme, in a move that is aimed to help with the economic impacts of the coronavirus. The Dollar has continued to strengthen due to its safe-haven status and because of its position as the most liquid currency.