The Pound Sterling gained against major rivals during London trade on Tuesday after a rebound in riskier assets encouraged Dollar selling. In the meantime, FX traders are still awaiting an update on the health condition of the British Prime Minister who was moved into the intensive care unit after his symptoms worsened. Analysts say that markets will respond to any news of Boris Johnson's health with a knee-jerk reaction but that long term fiscal policy will likely be unchanged in the longer term, say out from three to six months. The largest impact, they say, will be any government's response to the lockdown procedures that are currently in place, when the outbreak seems to be finally and definitively slowing.
As of 10:03 am in London, the GBP/USD was trading higher at $1.2330, a gain of 0.8063%; the pair has ranged from a session peak of $1.23511 to a low of $1.21627. The EUR/GBP was lower at 0.8816 Pence, a loss of 0.0748% and off the earlier trough of 0.87997 Pence while the high was recorded at 0.88672 Pence.
Yen Supported after Abe Announcement
The Japanese Yen found support against its major rivals after the Prime Minister of Japan announced fiscal stimulus measures equivalent to nearly $1 trillion in an effort to counter the negative impacts to the Japanese economy as a result of the Coronavirus. Traders are wary that any additional gains are likely to be capped after Shinzo Abe agreed to call for a state of emergency for the capital city and other major metropolitan areas. The USD/JPY was trading at 108.9410 Yen, down 0.23% and off the session low of 108.668 Yen.