Chancellor Sunak announced that 4 million jobs have been furloughed whilst 20,000 business interruption loans have been approved. He also announced a new micro-loan scheme that very small businesses can use to borrow up to 25% of their turnover (or a maximum of £50,000) which are 100% backed by the government.
Minister Gove has suggested that it is ‘still entirely possible to conclude negotiations’ with the EU using the existing timetable, with this news giving the Pound some support. Prime Minister Johnson has warned the EU that they must change their stance if a deal is to be made between the two parties.
The Euro has continued to lose ground against the Pound as the Ifo institute announced that they expect the German economy to contract by 6.6% in 2020. Italy’s new coronavirus cases have fallen to its lowest in 7 weeks with a figure of 1739, although the number of deaths increased compared to Sunday’s toll. Spain and France are due to announce their plan to ease lockdown restrictions, with Italy already suggesting a three-pronged approach.
New York has announced that they will ease lockdown restrictions on 15th May, whilst their death rate and the number of new cases have declined. President Trump has encouraged states to reopen as soon as possible to give the economy a boost in the second half of the year, which initially led to the Dollar weakening slightly. Trump also promised a full investigation into China’s role in the spread of the coronavirus. If tensions increase between the US and China then the Dollar may be susceptible to strengthening due to its safe-haven status. Consumer confidence data is due at 3pm, which is likely to cause some volatility to the greenback.