Following the announcement that UK prime minister Boris Johnson has been moved to an intensive care unit, the pound dropped sharply but sterling did not sustain further losses. Instead, GBPUSD has consolidated just above 1.23 (interbank trading level) as investors await further news. Meanwhile, deputy PM Dominic Raab has said Boris Johnson is a fighter who will be back at the helm to lead the country through the coronavirus pandemic. Raab confirmed that Mr Johnson had only received standard oxygen treatment and has not required any mechanical ventilation.
UK Coronavirus Cases to Peak Soon
Chief Scientific Advisor, Sir Patrick Vallance confirmed that coronavirus numbers were beginning to steady, raising the prospect the curve could be flattening and the UK reaching its peak. The UK has now surpassed 55,000 coronavirus cases and more than 6,000 deaths. By comparison, Germany has a considerably lower death toll and when this question was posed to the UK’s Chief Scientific Advisor, he said “I don’t have a clear answer for exactly what it is, the reason for that.” However, the general message was one that the UK is beginning to gain some control and was following the trend of other countries in Europe, which are 1-2 weeks ahead.
Investors have been in upbeat mood as it appears that the number of new coronavirus cases and deaths are beginning to lessen. This can’t be said for every nation but there is certainly a slight air of confidence that we may be beginning to turn the corner.
US Coronavirus Cases Ccntinue to Rise
In the US, coronavirus cases now stand at more than 385,000 with more than 12,000 deaths, and the toll continuing to rise, but whilst the US is on shutdown with bars, restaurants and shops closed, and the majority of American citizens told to remain at home, President Trump is weighing up options that would allow certain parts of the economy to reopen.
Despite previous volatility, GBPUSD is less than 0.5% lower than one week ago with a range of less than 100 basis points, which is a very slim trading range given current global economic events and volatility in previous weeks.
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