GBP/USD: Global pandemic weighs on the pound

The UK government's massive coronavirus relief package failed to provide any additional boost for the pound while the risk sentiment took a sharp knock after WHO declared the coronavirus as a global pandemic, Haresh Menghani from FXStreet reports.

Key quotes

“The Bank of England announced a surprise interest rate cut of 50 bps to counter the economic shocks from the coronavirus outbreak while the UK's new Chancellor of Exchequer Rishi Sunak delivered a massive £30 billion coronavirus relief package, including £5 billion emergency fund for the National Health Service.”

“The cable started losing steam after the World Health Organization declared the novel coronavirus a global pandemic.”

“The US President Donald Trump's announced the suspension of all travel from Europe for 30 days in order to fight the coronavirus, which extended some support to the greenback's relative safe-haven status against its British counterpart”

“The pair remained on the defensive through the Asian session on Thursday, around the 1.2800 round figure mark, ahead of the UK PM Boris Johnson’s further announcements to tackle the coronavirus.” 

“The ECB-led volatility in the FX market and any fresh developments around the coronavirus saga might further contribute towards producing some meaningful trading opportunities amid absent relevant market-moving economic releases, either from the UK or the US.”