Both the US dollar and the British pound have seen decline in world markets as a result of the worsening situation surrounding the coronavirus pandemic. While the strength of the disease is not decreasing in the United States, the UK has announced the spread of a new strain of the virus, which is expected to be up to 70 percent more contagious.
Analysts warn that the current period is typical of high volatility in markets when world currency rates are subject to fluctuations more often. Investor nervousness in the markets is growing, and currency rates are responding to literally every stimulus that relates to the health situation in the country. Thus, the course can go upwards, as well as downwards.
For investors, though, the US dollar is starting to be more interesting than the pound. Indeed, the US Congress is negotiating the fate of a fiscal package that could give the US economy a boost of up to $900 billion. And according to various sources, the package has decent chances of approval.
Also on the defensive is the British pound, topping on information about the occurrence of a new coronavirus mutation that causes the disease to spread about 70 percent faster. The pound has lost around 2.5 percent of its value against the dollar and is so at a 10-day low. Moreover, the British government is forced to tighten restrictions despite initially going to the opposite over the festive period.