The Pound dropped to its six-month lows. Overview for 18.03.2020
GBPUSD is updating its six-month lows while investors are trying to escape from risks.
In the middle of the week, the British Pound reached the lowest levels against the USD since September 3rd, 2019. The current quote for the instrument is 1.2014.
It’s all about investors trying to avoid risks due to quarantine restrictions. The United Kingdom is very serious about the matter and has already recommended people older than 70 to quarantine themselves over a long period of time. A relevant official statement will be announced in the nearest future but it is already known that elderly people were advised to stay at home to avoid the coronavirus. The total number of deaths in the United Kingdom is 21 and all of them were older than 60 years old. The older generation is at risk and the country’s authorities are doing their best to protect it.
The statistics published yesterday showed that the Unemployment Rate in the country went from 3.8% in December to 3.9% in January, although it wasn’t expected to change. The Average Earnings Index added 3.1% 3m/y against the expected reading of +3.0% 3m/y. The Claimant Count Change showed 17.3K in February after being -0.2K the month before and against the expected reading of 6.2K.
Most likely, March numbers on the employment market will be worse due to active quarantine restrictions and contraction in business conditions. In fact, it may have a very significant influence on the country’s economy at the time of Brexit.