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The UK Treasury Committee is to question BOE’s Carney and Bailey. 

With the cross-party Treasury committee officially appointed, one of its first tasks will be to question Andrew Bailey over his role as the next governor of the Bank of England which he is due to start on 16 March.

While the coronavirus is obviously a matter of discussion, this is in fact standard procedure for the influential group of MPs, but comes at a time of great challenge for an incoming governor, not least amid the possibility of an economic collapse caused by the coronavirus outbreak, but also as the UK and EU get around the negotiating table. 

UK budget in focus

There is also recent news that the UK is working on measures to support health service, businesses and economy as needed in response to coronavirus – Finance Ministry –This month’s budget will be a major focus for GBP traders on 11th March. The recent turmoil in markets and prospects of an economic crisis or infection-induced shocks will be leaving less fiscal wiggle room for Mr Sunak as funds will potentially be kept back for emergency contingency plans that could hamstring his ability to pay for the Prime Minister’s ‘levelling up’ agenda in the North of England. The cost of locking down London in a worst-case scenario could spiral to £10billion, according to one consultancy firm. 

FX implications

GBP/USD has been falling towards the bottom of the annual value range which correlates with long term support and resistance structure, a break of which opens risk towards the 1.2180. On a return to the point of control for the same period, GBP/USD would be seeking out 1.3090. 2020’s point of control is located at 1.2998, just shy of a 38.2% fibonacci retracement of the 13 Dec highs.