24.03.2020 GBP/USD Daily Analysis

24.03.2020 GBP/USD Daily Analysis

Today GBP/USD is $1.1678 (+1.25%) as the pound rises due to PM Boris Johnson announcing stricter lockdown measures in the UK to combat the spread of the novel coronavirus. These measures include limiting gatherings of more than two people in public areas for three weeks. The USD continues to fall as the Fed announced measures to support credit markets which included maintaining credit flow for the business. In a statement released, the Fed said, “The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation’s first priority is to care for those afflicted and to limit the further spread of the virus. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.” The Fed`s continuous easing measures will help the credit markets but will definitely make the USD weaker. The USD Index is down by 1.1% and is at 102.09. Today there US New Home Sales which measures the annualized number of new single-family homes that were sold during the previous month. Usually, a higher than expected result would have a positive effect on the  USD, however, investors don't believe that will be the case this time with all the measures the US government and Fed have been taking to ease the impact of Covid-19.