RationalFX : The pound reached three week highs before the Easter break as the Dollar fell against major currencies when the FED announced a stimulus package to support the US economy……..
The FED announced a 2.3 trillion dollar effort to bolster local governments and small and mid sized businesses in its latest move to support the US economy.
The central bank’s announcement came as data showed that the number of Americans seeking unemployment benefits topped 6 million for the second straight week, with businesses closed across the country in an attempt to stem the spread of the coronavirus.
The pound which has been gaining recently extended its gains after the FED announced the stimulus package as risk appetite improved across the board following the dollar weakening.
Furthermore the Bank Of England has agreed temporarily to lend money to the government to help fight the economic impact of Covid-19 if funds cannot immediately be raised from money markets.
Source : ETFWorld.co.uk