The pound lost some of its gains yesterday and is still weak this morning, as optimism surrounding the coronavirus crisis waned. This came as the International Monetary Fund predicted that the global economy is expected to shrink by 3.0% during 2020.
Both the Health Secretary, Matt Hancock, and the Chief Medical Officer said in the daily press conference yesterday that the UK has not yet reached its ‘peak’, which is why lockdown measures are yet to be eased. However, the UK’s deputy chief scientific officer, Dr Angela Maclean said that lockdown measures do appear to be working.
Brexit worries are also weighing on the pound, as there are concerns that the UK and EU now won’t be able to reach a trade deal by the end of the year. The two sides are preparing to reconvene talks next week, however, due to the coronavirus crisis, they are behind with negotiations.
