The pound to US dollar exchange rate has pushed higher this morning finding support over 1.23 for the GBP USD pair.
UK Prime Minister Boris Johnson is continuing to suffer coronavirus symptoms and has reportedly been moved into intensive care. The former Brexit Secretary Dominic Raab has now taken over as deputy Prime Minister.
The World Health Organisation is expecting the US to be the epicentre of the pandemic and already the US has recorded the highest number of deaths in the world. At the moment investors around the world are looking at the levelling out of cases of the virus which is being seen in Europe at present after lockdown measures are starting to show a positive outcome. The same may be true in the UK but it is known that the UK is a couple pf weeks behind the likes of Italy and Spain which have seen a very high number of coronavirus cases.
US President Donald Trump has tweeted that there is now “light at the end of the tunnel” as reports also emerge that the US may look to consider easing some of their own restrictions by the end of April. This view is backed up by New York Governor Cuomo who said that the level of mortalities may be plateauing.
GBP Vs USD
As far as GBP vs USD exchange rates are concerned there are two important questions which investors are trying to predict. One is how long the lockdown measures both domestically and globally will last for and secondly what he hit to GDP for the UK and US economies will look like. Those clients looking to buy or sell dollars would be wise to make contact to plan around all the latest developments as in these markets there is high volatility.
The US Federal Reserve will release its latest minutes on Wednesday which may offer some insight as to the central banks thinking and what it may do going forward to get the economy back on track when coronavirus eventually finishes.
This Thursday will see UK manufacturing production and industrial production numbers which should give some idea as to how much the sectors have been hit from Covid-19.
If you’d like to discuss these factors and how they could impact an upcoming currency transfer, feel free to get in touch with me, James Lovick, using the form below.