Interest rate cuts and coronavirus
Currency markets were rocked last week after a number of central bank’s moved to cut interest rates, as the economic impact of the coronavirus threatens to plunge parts of the world into a recession.
Amidst an extremely chaotic start to the week we have seen GBP/EUR trading close to a five-month low at €1.1436, while GBP/USD has surged to US$1.3110.
Looking to the week ahead, we expect coronavirus headlines to continue to dominate market sentiment and infuse further volatility into the currency market.