• Pound (GBP) extends losses after 1% slump
  • A curfew is expected to be announced today by Boris Johnson
  • BoE Governor Andrew Bailey is due to speak
  • US Dollar (USD) gains, Fed Chair Powell expected to push for additional fiscal stimulus from Congress

After diving almost 1% in the previous session, the Pound US Dollar (GBP/USD) exchange rate is attempting to claw back some lost ground on Tuesday. The pair settled -0.9% at US$1.2814, above the low of US$1.2774. At 06:15 UTC, GBP/USD trades up -0.24% at US$1.2785.

The Pound sold off sharply in the previous session and is extending losses amid growing fears over the second wave of coronavirus. The number of new cases each day is just over 4000 and the number of deaths is also on the rise.

Prime Minister Boris Johnson is due to speak later today. He is widely expected to announce that bar, restaurants, pubs and hospitality venues must close by 10pm in a bid to curb the spread of coronavirus. Boris Johnson is also expected to announce that these venues will be restricted to table service only. More restrictive measures will obviously hit these businesses hard.

The speech will come after Britain’s tops medical advisor, Chris Whitty, yesterday warned that the UK could face an exponential surge in covid infections and deaths in just a matter of weeks.

Boris Johnson will address the nation this evening at 18:00 UTC.

Prior to this a speech by Bank of England Governor Andrew Bailey could offer some direction to the Pound in the near term.

The US Dollar soared in the previous session as investors fretted over the global rise in covid numbers and sought out its safe haven properties.

Today Federal Reserve Chair Jerome Powell and Treasury Secretary Steve Mnuchin will speak before the House and the Senate. Both are expected to advocate more stimulus spending. Their appearances come as the democrats and Republicans have been unable to agree on additional stimulus after the $600 unemployment benefit top up expired.