The pound is weak against the euro this morning, despite regaining ground after yesterday’s emergency rate cut by the Bank of England. In Rishi Sunak’s first budget, he announced £12 billion in extra spending to help combat the economic impact of coronavirus, as part of an overall £30 billion spending increase.
In the eurozone, the markets will be looking forwards to this afternoon’s interest rate decision. The ECB has little room to manoeuvre compared to the Bank of England or Federal Reserve, with the main rate already at zero.
Earlier this week, Donald Trump had raised the idea of an economic stimulus, but his plans lack the detail that the markets were hoping for.
There is a huge amount of uncertainty around at the moment and no-one can say how long it will last, or what path it will take. Make sure to ring-fence your money against the risks of the live markets by locking in a fixed exchange rate.
We’re open as usual, so please don’t hesitate to speak to your Personal Trader about a forward contract on 020 7898 0541.
