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London RationalFX

RationalFX : Chancellor’s support package boosts sterling

RationalFX : Chancellor Sunak yesterday announced his £30bn support package for the UK economy with 11 million jobs being protected with further measures to come in Autumn’s budget …

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RationalFX


GBP

Sunak announced a job retention bonus of £1,000 per employee for companies who bring employees back to work if they are employed up until at least January 2021.

There were also reliefs for home buyers, Sunak announced the threshold for stamp duty will temporarily increase to £500,000 from £150,000 until March 2021 in an attempt to entice house buyers back into the market.

VAT has also been cut to 5% for the hospitality and tourism sectors to boost these industries.

USD

The dollar fell sharply on Wednesday as investors focused on better US economic data rather than high coronavirus cases and rocky relationships with China.

ISM surveys released earlier this week showed the US services sector returning to growth in June. Investors are currently choosing to focus their attention on this news rather than the worryingly high coronavirus cases now topping 3 million in the US alone. This focus has helped push both sterling and the euro higher as we see a sustained focus on selling the dollar.

Key announcements

None

Source : ETFWorld.co.uk

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