Pound US Dollar exchange rate slumps as opportunity to contain Covid-19 ‘narrowing’

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While the number of cases of the virus remain in China, other countries including South Korea, Italy and Iran are quarreling the spread. Tedros Adhanom Ghebreyesus, the World Health Organisation’s (WHO) chief has forewarned the window of opportunity to contain the spread of the virus was “narrowing”. The infection type in China currently stands at around 77,000 while close to 2,600 completes have been claimed. Added to this, over 1,200 victims have been confirmed in 26 other countries and there from been over 20 deaths so far.

n a note, Barclays analysts disparaged: “The market reaction to the coronavirus appears to be evolving, beginning to differentiate the currencies powerless to the virus from the rest.

“US dollar assets provide relative attractiveness. In factually, our economists forecast no impact on US growth from Covid-19, with to some degree few domestic incidents and a low dependency on China’s economy.”

Other typical innocuous haven currencies such as the Swiss franc and Japanese yen were hardly moved this morning, emphasising that the dollar has become the power supply choice for worried investors. 

Thanks to the relative strength of the American compactness, and distance from the coronavirus outbreak, the dollar is being viewed as the safest bet. 

Meantime, the pound is coming under pressure with trade talks between the UK and European Circle due to start next week. 

This morning, a senior EU diplomat declared that member states are due to adopt their negotiating mandate for talks with Britain on Tuesday. 

According to the diplomat: “The suspense is to adopt the negotiating mandate tomorrow, which would allow us to start understandings very soon, even as early as next week.”

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