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During late-Tuesday, The Guardian relied on the business and industry sources to convey UK Chancellor Rishi Sunak’s inclination to follow Germany while seeking replacement of the furlough scheme.

Key quotes

The sources said the Treasury had decided, at the eleventh hour, to delay an announcement timed for Wednesday that would have extended the availability of state-backed loan schemes for struggling companies.

The chancellor was expected to confirm four government-backed loan guarantee schemes would be extended until November.

One option believed to be under consideration after talks with businesses and unions in recent weeks is a scheme similar to the German Kurzarbeit (“short work”) system – which would involve the government paying the wages of workers for short-time working.

FX implications

While the news should ideally help GBP/USD, by way of indicating further helps to the British business, the Cable stays mostly unchanged around 1.2735 amid a generally quiet period for the Pound traders.