11.03.2020 GBP / USD Daily Analysis

11.03.2020 GBP / USD Daily Analysis

Today GBP/USD is trading at $1.2944 after the Bank of England cut their interest rates by half a percentage point early today, leaving the interest rate at 0.25% which is the lowest since 2016. "These measures will help keep firms in business and people in jobs and they will prevent a temporary disruption from causing longer-lasting economic harm," Carney said alongside his successor Andrew Bailey. These measure are an attempt to ease the impact of the coronavirus on the economy. This news comes a week after other countries such as the US, Canada, and Australia cut their interest rates. Later today, the UK will release its Autumn Budget and GDP which will give investors an idea of how well the economy is doing. On Tuesday, US President Donald Trump held a press conference where he addressed the measures the government is willing to take to ease the impact of the Coronavirus on the economy and announced a payroll-tax cut to 0%. This press conference was anticipated by investors because it would give insight on what is going to happen with the USD and the US stock market. The US stock market has been recovering since the press conference as Trump was able to assure investors about economic stability. In this press conference, President Trump stated that there was no need for anyone who has no symptoms to be tested for coronavirus, leading people (once again) to believe that the severity of the Coronavirus in the US is not that high. Today, there is the US Core Consumer Price Index (CPI) which measures the change in the price of goods and services, excluding food and energy from the perspective of the consumer. If the result is higher than expected then this should have a positive effect on the USD.