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March in the Markets.

Bank of England Reports Published in March 2020

Financial Policy Summary and Record – Read the report

The Bank of England’s Financial Policy Committee (FPC) assesses the outlook for financial stability by identifying the risks faced by the financial system and weighing these against the resilience of the system.

Decision Maker Panel Survey Results – 2020 Q1 – Read the report

The Decision Maker Panel (DMP) is a survey of Chief Financial Officers from small, medium and large UK businesses. It is used to monitor developments in the economy and to track businesses’ views. This is a summary of the results up until March 2020.

Monetary Policy Committee Meeting Summary – Read the report

The MPC voted unanimously to maintain Bank Rate at 0.1%. The committee also voted unanimously to continue with the programme of £200 billion of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, to take the total stock of these purchases to £645 billion.

Coronavirus: Stock Markets Suffer Worst Quarter Since 1987

From: The BBC

Stock markets around the world suffered historic losses in the first three months of the year amid a massive sell-off tied to the coronavirus.

The drops come as authorities order a halt to most activity in an effort to slow the spread of the virus.

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World Stock Markets Stabilized

From: Daily Forex

The global coronavirus pandemic continues to increase exponentially from its epicentre in Europe and the U.S.A, with 40% of the world’s population now under lockdown restrictions which are causing very significant economic damage.

A global recession appears to be inevitable, with Goldman Sachs forecasting a 23% drop in U.S. GDP and other analysts seeing a 30% unemployment rate in the near future. If correct, these will be the worst such numbers since the 1930s.

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Swiss National Bank Keeps Cash Rate Steady

From: Daily Forex

The Swiss National Bank decided to leave the cash rate unchanged at -0.75 percent, leaving the 3-Month Libor Target Range unchanged between -1.25% to -0.25%.

On its monetary policy assessment, the Bank claimed that the Swiss Financial system has sufficient liquidity and that it will do whatever is necessary to ensure liquidity in the markets.

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Dollar May be Set for Another Damaging Bout of Strength

From: Reuters

If the 2008 financial crisis is any guide, world markets – which have barely had time to recover from the dollar’s 9% surge in mid-March – may be set for another damaging bout of strength in the greenback.

In the 10 days from March 9, the dollar leapt against almost every other currency as companies and banks bought it to pay their creditors, trade partners and suppliers. Money market funding rates jumped and share prices plunged as those desperate for the U.S. currency liquidated investments.

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Sterling Rises as Investors Adjust Quarter-end Positions

From: Reuters

Sterling rose on Tuesday as investors readjusted their portfolios at the end of the first quarter of 2020, although analysts said the currency remained fragile.

The pound fell earlier in the day against the dollar as the U.S. currency gained strength due to its safe-haven properties amid the spread of the coronavirus.

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FX Rates in March

GBP/EUR

Mar High: 1.1601
Mar Low: 1.0588
Mar End: 1.1205

GBP/USD

Mar High: 1.3195
Mar Low: 1.1635
Mar End: 1.2343

EUR/USD

Mar High: 1.1446
Mar Low: 1.0748
Mar End: 1.1010