The pound is weak against the euro this morning on news that the US has enforced a 30 day travel ban on all flights from mainland Europe. Sterling also weakened as Italy announced the closure of all businesses, apart from supermarkets and pharmacies.
After initially falling following the Bank of England’s emergency interest rate cut, the pound rebounded against both the euro and the dollar yesterday. The rate cut was co-ordinated with the Treasury, who revealed their 2020 Budget shortly afterwards. New Chancellor, Rishi Sunak, announced plans for suspending business rates, extending sick pay and boosting NHS funding.
Commenting on the coronavirus, Sunak said that the UK economy would experience “significant” but temporary disruption. Of the £30 billion in extra spending, £12 billion will target coronavirus measures.
Both Industrial and Manufacturing Production figures came in yesterday, missing expectations. Today is light on data, but the markets could continue to process rate cut implications and the government’s new spending plans.
