Yesterday, the Bank of England announced that they will cut interest rates by a further 15 basis points from 0.25% to 0.10%. In addition, they are increasing their quantitative easing program from £200bn to £645bn.

Although the rate cut was expected at some point this month, the increase in QE went above what was expected which encouraged the market and helped the Pound recover some of its recent losses. Prime Minister Johnson has suggested that the UK ‘can turn the tide’ against the coronavirus outbreak within 12 weeks. Today, Chancellor Sunak is set to announce a wage and employment subsidy package to help protects jobs across the UK.

ECB member de Guindos has mentioned that governments around Europe need to ramp up their fiscal measures to deal with the virus, and believes the central bank are capable of doing even more. The Euro has lost ground against both the Pound and the Dollar.

FOMC member Daly has said that he is encouraged by the decrease in volatility experienced in the markets yesterday, suggesting that the measures the Federal Reserve have put in place are starting to take effect. The Dollar has still maintained favour across the market and remains strong.

China is expected to step up their fiscal response to help with their economy recover quickly from the pandemic, which includes plans to spend around $364bn on infrastructure through particular bonds. However, economic growth forecasts in China could be cut to 5% from 6% that was forecasted just in December.