EURGBP jumped to 0.9092 after the news that PM Boris Johnson tested positive for Coronavirus. Boris Johnson over the last 24 hours has developed mild symptoms and tested positive for COVID-19. He is self-isolating, but he will continue to lead the government’s response via video-conference.
Over the last 24 hours I have developed mild symptoms and tested positive for coronavirus.
I am now self-isolating, but I will continue to lead the government’s response via video-conference as we fight this virus.
Together we will beat this. #StayHomeSaveLives pic.twitter.com/9Te6aFP0Ri
— Boris Johnson #StayHomeSaveLives (@BorisJohnson) March 27, 2020
The pair after the initial positive reaction return back to unchanged level, while as of writing EURGBP is 0.31% lower at 0.9005.
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The EURGBP continues lower for the fourth day in a row as the pair corrects from seven-month highs. The British pound is under selling pressure the last weeks amid the coronavirus outbreak as investors worry that the British government respond too late in adopting strict measures to contain the virus spread.
After reaching the recent high at 0.95, the EURGBP retreated back to 0.905 zone after the BOE injected liquidity into markets. Yesterday, BOE left interest rates unchanged at 0.10%. The quantitative easing program remained at 645 billion. According to the Monetary Policy Committee, the positive effect of the QE program still needs time to implement, and it will not be reasonable to reduce it now. BOE also noted that is ready to respond further as necessary to guard against an unwarranted tightening in financial conditions and support the UK economy.
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