Pound and the Pandemic:
The recent discussion between the President of European Commission and the Prime Minister of U.K has led to the further downfall of Pound. The value of Pound continues to be weak as the economy of U.K is still struggling. The value of Pound would be expected to enjoy a rise and get a slight relief but then came the horrifying news of another strike of pandemic. The worry and fear associated with the news of the second wave and cycle of pandemic corona virus is definitely going to shake the economy as well so there is no hope of any major and prominent improvement. However the Prime Minister of U.K is struggling hard to make a beneficial deal and the turn tables. But unfortunately Pound has to face the brunt of the pandemic again like Asian financial markets.
Economy of U.K:
He recent update on the policy of the Bank of England confirms this fact. The recent data reveals that GBP/USD further falls by 0.1% and reaches the lowest value for the last two weeks. Now the recent value of GBP/USD is 1.2540 while the value of EUR/GBP is 0.8976. The facts about the GDP also reflect the severe effects of the pandemic on the economy of U.K. The GDP witnessed a serious decline of 20% in April,2020. The industrial production also failed to avoid the side effects of the pandemic and dropped by 20% which is definitely a significant figure. Manufacturing production reduced by 24% and continues to shake the economy. (Asian financial markets)
Asian Financial Markets:
The terrifying news of the revival of corona virus has weakened the Asian Financial Markets. As a result USD manages to enjoy an improvement. The USD continues to grow and becomes strong as the Asian currencies are witnessing a downfall. USD enjoys a rise in all its pairs such as USD/SGD enjoys a rise of 0.3%,USD/MYR gains 0.3%, USD/IDR is up by 1.4%.