13.03.2020 GBP/USD Daily Analysis

13.03.2020 GBP/USD Daily Analysis

GBP/USD is trading at $1.2506. On Thursday the Federal Reserve took aggressive measures to ease what it called temporary disruptions in treasuries. These measures included flooding the market with liquidity and widening its purchases of US government securities. This was a method they used during the financial crisis. The Federal Reserve Bank of New York stated that the “changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak” and had been done at the direction of Fed Chairman Jerome Powell. Investors had lost faith in the US government and this was evident in the downward momentum of the US stock market and the USD. The Federal Reserve is set to meet next week to discuss possible further interest rate cuts and to give markets new guidance about how it plans to combat the economic fallout from the coronavirus.