- GBP/USD extends the south-run amid coronavirus concerns.
- UK Brexit negotiator isolates himself, PM Johnson mentioned can turn the tide.
- Chancellor Rishi Sunak to unveil wage bailout.
With the hints of yet another step by the UK to combat coronavirus (COVID-19), GBP/USD drops to the fresh lows since 1985 while flashing 1.1412, currently near 1.1430, during the early Friday’s Asian session.
The pair recently witnessed fresh downside pressure following the news that the UK’s Chief Brexit negotiator David Frost is isolating himself on the symptoms of the deadly virus. Earlier, his EU counterpart Michel Barnier was informed to have the disease.
Also likely to weigh on the pair could be The Telegraph’s news the UK Chancellor is likely to leap in his fight against the pandemic. The Tory diplomat is expected to announce paying workers weekly subsidy and mark the biggest state intervention in the economy since the war.
After the initial slow response to tame the deadly virus, which was highly criticized, the British diplomats and the BOE are trying many measures to ward off the negative implications of the flue-like infection.
It should also be noted that the recent hike in the death toll in the UK pushed PM Boris Johnson to mention, via The SkyNews, “I believe a combination of the measures that we’re asking the public to take and better testing, scientific progress, will enable us to get on top of it within the next 12 weeks and turn the tide.”
The risk-tone turns heavy again as the S&P 500 and Dow Futures fail to carry the Wall Street gains.
Investors will now keep eyes on the coronavirus headlines for fresh impulse.
Buyers are less likely to enter unless witnessing sustained trading beyond 2019 lows surrounding 1.1960.