After strengthening earlier in the day, the pound was weaker against the euro and the dollar yesterday afternoon. Having taken comfort in the fact that the Bank of England released stimulus measures to mitigate the impact of coronavirus, investors are again worrying about the effects of the virus on the UK economy. However, sterling is slightly stronger again this morning.
A joint letter signed by Chancellor of the Exchequer Rishi Sunak and Bank of England governor Andrew Bailey has warned banks to lend to fundamentally viable companies and not allow them to collapse during the coronavirus pandemic. The Bank of England will hold their official meeting later today.
Yesterday afternoon, Parliament closed after emergency laws on coronavirus were passed. MPs are expected to return on the 21st of April.
UK inflation rate came in as expected yesterday morning, at 1.7%. This morning, retail sales figures were lower than expected for February, with a range of retailers providing feedback on the adverse effect of the extreme rainfall on sales.
