Bank of England Governor Bailey has said that the central bank is happy to keep stabilising the market with their ongoing quantitative easing program and that both the monetary and fiscal responses to the coronavirus should stay coordinated. Bailey also suggested that interest rates in the UK will stay very low for the foreseeable which weakened the Pound against the Euro and the Dollar. Foreign Secretary Raab is set to end the UK’s extradition treaty with Hong Kong today as tensions have increased between the UK and China.
EU leaders have been negotiating the terms of the proposed recovery fund since Friday with talks set to resume at 2pm today. Some members are reported to be disputing the size of the fund at €750 billion whilst others have argued that the fund should be repayable loans rather than grants. Reports suggest that these talks have been heated with French President Macron threatening to walk out of the negotiations. Dutch PM Rutte has said that talks are ‘close to failure’ whilst French finance minister Le Maire believes a deal can be struck. Overall, the Euro remains strong against both the Pound and the Dollar as the market remains hopeful that a compromise can be reached.
The US has seen another record in the number of new coronavirus cases reported at 77,000 which has prompted further lockdown measures to be reintroduced in some states. Several fiscal measures introduced to help alleviate the economic impacts of the coronavirus are set to expire at the end of July. As a result, President Trump will meet Republicans in order to discuss further steps that will be taken. The greenback remains extremely volatile, losing ground against a stronger Euro.