The UK government is expected to announce further fiscal measures to stimulate the economy as experts warn that many businesses may shut down due to the latest set of restrictions. The Pound remains under pressure for the time being, as the market is waiting for more fiscal stimulus to be announced with the number of virus cases increasing.
This morning, UK average earnings and the unemployment rate are set to be released at 9:30am which may cause short term volatility.
French President Macron has announced a fiscal package worth €300bn in order to support businesses across the country and has waived utility bills for the time being. French Economy Minister Le Maire has predicted that their economy will contract by 1% in 2020. Eurozone and German ZEW economic sentiment figures are due at 10am this morning, which will show how businesses are viewing the current situation with the coronavirus outbreak. If this comes out better than expected, then this would provide a boost for the Euro.
Following the announcement by the Federal Reserve to cut interest rates to 0-0.25% and inject the economy with $700bn through quantitative easing, the focus shifts to what the governments response will be with the Democrats suggesting a fiscal package worth $750bn to help individuals and businesses. The Dollar has made gains against the Pound and Euro as its safe-haven status comes into play again.