GBP/USD is trading closer to 1.16 after the US Federal Reserve announced a massive program to buy everything on the market in an open-ended scheme. The Fed will buy all asset classes, guaranteeing the functioning of credit markets.
The Fed’s announcement comes in response to the coronavirus crisis and it has sent the US dollar down across the board.
GBP/USD was trading around 1.15 ahead of the news, as the greenback was receiving safe-haven flows. The currency pair’s 35-year low of 1.1414 was in sight.
In the UK, the government is planning additional social distancing restrictive moves.