- Boris Johnson outlined plans to get the British economy moving again
- Trump urges the US back to work
- US unemployment rate reached 14.7%
- GBP/USD is trading +0.15% at US$1.2422 at 07:15 UTC. Real time exchange rates
After losing 0.76% across the previous week, the Pound is attempting to claw back some of those losses in early trade on Monday. Boris Johnson easing some lockdown measures, in addition to a broad risk on sentiment across the global financial markets is lifting the Pound US Dollar exchange rate at the start of the new week.
At 07:15 UTC, GBP/USD is trading +0.15% at US$1.2422. The pair closed the session on Friday on the front foot at US$1.2409, although the pair was lower across the week.
GBP: Lockdown Eases & Job Retention Scheme Extension
UK Prime minister Boris Johnson has set out a three-stage plan to ease lockdown measures and reopen the UK economy, finally giving Britain some visibility as to what comes next.
With the number of UK coronavirus deaths at the lowest level for a month, Boris Johnson relaxed some of the strict stay at home measures. People will be allowed to exercise outdoors more frequently and those who haven’t been able to work from home will be encouraged back to work from today. This means that the construction and manufacturing sectors will be reopening this week.
Adding to the improved mood, rumours are circulating that the Chancellor Rishi Sunak will announce an extension to the job support scheme until September, but at the reduced rate of 60%. Currently the hugely popular scheme sees the government pay 80% of the wage of employees who have been furloughed.
Whilst there is no high impacting UK data due for release today attention will shift towards Brexit as EU – UK trade deal talks resume.
USD: Trump Urges Workers Back To Work
Demand for the US Dollar has weakened amid an improved mood in the market as countries continue to ease their lockdown measures. Riskier assets are back in favour, with US stock markets pointing to a stronger start, meanwhile safe havens such as the US Dollar are moving lower.
Investors are shrugging off data at the end of last week which revealed that 20.5 million US jobs were lost in April and the unemployment rate reached 14.7%. The bad news surrounding the US labour market was expected. Focus is now firmly on the reopening of economies, with Trump urging the US back to work.
