Chart of the Day – GBP/USD is Trying to Find Some Support

Sterling has pulled off Friday’s multi-month lows after the US Federal Reserve slashed 75 basis points off its lending rate and announced another round of bond buying (QE) to the tune of USD750 billion. This is the second emergency cut by the Fed in the last two weeks and it comes just days before a scheduled FOMC meeting on Wednesday, indicating the emergence of the current situation. It remains to be seen if the Fed’s action will work, but other countries will now need to cut further and introduce additional liquidity measures, forcing a race to the bottom of the FX market. GBP/USD sold off sharply on Friday and is currently trying to find some support. The only drivers of price action in the short term will be coronavirus updates and additional central bank measures.