The UK governments recent fiscal stimulus package worth £330bn failed to help the Pound recover from its recent losses. The Pound is at its lowest levels since against the Dollar since 1985. With schools closing from Friday afternoon until the foreseeable future and also rumours that London may go into lockdown, the market is extra cautious.
The ECB have launched an emergency €750bn aimed at easing the economic impact of the coronavirus called the Pandemic Emergency Purchase Program (PEPP). These measures will include buying bonds from countries and corporates from across the Eurozone including debt from Italy and Greece. ECB President Lagarde also said that “there are no limits” in what the central bank are prepared to do in order to help the Eurozone.
Despite recent announcements from the Federal Reserve and Treasury to inject the US economy with extra money, the Dollar has continued to strengthen against both the Pound and the Euro due to its safe-haven status as investors exit their other positions for the time being.