Significant Jump in GBP to USD Following News From Bank of England

Following on from the news that the Bank of England has acknowledged that negative interest rates would cause problems, the Pound pushed higher on Tuesday.

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It was noted that the UK economy is in a very bad state but this news resulted in investors taking their chances. Once again, the direction of the currency is likely to be dictated by Coronavirus, but at the end of trading, the Pound finished the day at 1.196 against the Euro and 1.3668 against the US Dollar according to the Foreign Exchange Market.

It was not good news for the Euro on Monday as Coronavirus continued to hamper Germany, the largest economy in Europe. The German Chancellor, Angela Merkel indicated that the national lockdown could remain in place for an additional ten weeks, putting further pressure on the economy and the single currency. However, the direction of the Euro is likely to be determined by the speed from the European Central Bank today.

Investors moved away from the US Dollar yesterday, following a rally in equity markets. Despite this, losses were capped after news came about that the Federal Reserve was looking to slowly remove its stimulus programme in response to a brighter future for the economy after the pandemic has passed.

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