GBP/EUR: Pound Steady A Boris Johnson Switches Attention To Policies

The euro has dropped below the key psychological US$1.08 level and touched US$1.0778, the lowest level since April 2017 level in early trade on Thursday.

The dollar has advanced across the board on an upbeat economy and on coronavirus fears. Meanwhile softening German consumer confidence has dragged on the euro.

GFK Consumer Confidence Drops

Data from GFK market research group revealed that German consumer confidence was set to weaken slightly in March as the coronavirus outbreak has contributed to uncertainty among households. The slowdown or stop of production in China and the slowdown in consumption could affect production in Germany, potentially leading to reduced working hours in German factories or even staff reductions. These fears drag on consumer confidence.

Up until now the slump in the German manufacturing sector hasn’t spilled over into the consumer sector. However, with softer consumer confidence expected in the coming month, the German consumer sector could also experience a slowdown.

The minutes from the European Central Bank will be released later today.

US Dollar Underpinned By Fed Minutes & Safe Haven Flows

The US dollar is advancing as investors digested the minutes from the latest US Federal Reserve monetary policy meeting and amid increased flows into safe haven assets on coronavirus fears.

The minutes showed that the Fed were cautiously optimistic over their ability to keep interest rates on hold across the year despite new risks. The Fed acknowledged the risks associated from the coronavirus outbreak. However, they also gave a relatively upbeat assessment of the US economy, expecting consumer spending to remain on a firm footing and job gains to expand at a healthy rate. Whilst the dollar’s reaction was fairly muted immediately following the release, the dollar has gained overnight.

Fears surrounding the coronavirus outbreak are rising again on Thursday after the number of cases in South Korea doubled and after two people on the Diamond Princess died from the killer virus. Beijing has injected some liquidity into the financial system and reduced the requirements for household loans in an attempt to support the Chinese economy. However, some market participants doubt that is sufficient. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.</h6