Return to daily updates Monday March 16th 2020

Fed slashed rates once more


  • Fed slashed rates once more
  • GBP continues to freefall


  • The pound continues to free falls already at a five month low versus the USD and down circa 10 cents in the past month versus the Euro. The government moved to the “delay” phase of its plan to tackle the pandemic on Thursday, but many experts believe the UK’s response falls way short of other countries. On Friday, the Bank of England (BoE) released the minutes of its emergency meeting last Wednesday, when it slashed interest rates. According to the central bank, economic activity will “weaken materially” over the coming months. The BoE raised expectations of a second quick-fire rate cut by reassuring the nation that it has the necessary tools at its disposal to fight the economic shock.


  • The euro pushed higher versus a weaker dollar on Monday morning, currently trading around 1.1235. The euro has been a big positive in the markets since stocks started falling trading a multi month highers versus the pound and erasing all gains made by the USD in early 2020.


  • The Federal Reserve has cut interest rates to near zero and launch a $700 bln USD quantitative easing programme. This is now the second case of emergency action from the Fed after they increased liquiity with a $1.5 trillion injection into the economy after US stocks tanked and the number of cases in the US of COVID-19 soared. GBPUSD moved higher to 1.2440 but has since retraced.

Amir Mehrad
Market update by Amir Mehrad
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