Question

How Covid 19 impacted EURO to POUNDAlso find important dates for the pandemic that affected the EURO and analyze the reasons for the fluctuation. (Please cite your sources)

Answer 1

The coronavirus has had a seismic affect upon the world, highlighting that no one is impervious in these times, including businesses.The currency market has witnessed a change in the price of money thanks to the coronavirus pandemic.The outbreak of the COVID-19 pandemic has been unprecedented, and its impact to world markets has been reflected in foreign exchange.

Impact:-

In the United Kingdom, the pound to euro forecast has been free-falling, thanks to the effects of Brexit vote and change of guard. These two factors have made the Boris led administration to engineer countermeasures to help stabilise the currency. The United Kingdom is among the biggest economies in Europe; hence its relationship with the continent is affected.

Trading arrangements - the European Economic Union had harmonised how commercial and financial sectors ran throughout the continent. It provided a free trade area, a customs union, and a reserve bank. The reserve bank came up with the Euro to stabilise the European market against other regions.

Leadership uncertainties - the change in guard ushered in a wait-and-see approach between the United Kingdom and the European Union. A record three Prime Ministers in less than five years, all from the Conservative Party From the institutional David Cameron to the calculative Teresa May, and the progressive Boris Johnson, each had their approach. Teresa May was keen to implement Brexit, but with an economic deal that will cushion Britons from price action in the Economic Union. Boris is a forward-leaning leader whose policies improved the British commercial advantage, strengthening the Pound in the process.

The health pandemic has shifted the focus to internal governance structures. The United Kingdom’s healthcare system is among the best in the world. taken ill, treated and healed, the Prime Minister showed Europe and the world that the country is reliable and able to contain the pandemic within its ranks. It is a strong case within economic circles, boosting social advantage and bargaining power.The effects of Brexit have died down since the policies have shifted from foreign to the health office. The shutdown in most European countries has halted international trading arrangements.

Under normal trading conditions, a decline in the value of GBPUSD can be reported as a positive development for companies in the FTSE100, who report most of their profit in Dollars. However, in this situation, given the overall sentiment and fear in the UK markets, you would expect to see the value of the Pound decline at a similar pace to the FTSE100.

Important Date:-

31 December 2019:- At the close of 2019, the WHO China Country Office was informed of a pneumonia of unknown cause, detected in the city of Wuhan in Hubei province, China.

5 January 2020:- WHO  reported on the status of patients and the public health response by national authorities to the cluster of pneumonia cases in Wuhan.

10 January 2020:- WHO issues its first guidance on the novel coronavirus.

13 January 2020:- Officials confirmed a case of the novel coronavirus in Thailand. It was not unexpected that cases of the novel coronavirus would emerge outside of China

28 January 2020:- WHO Director-General Dr Tedros Adhanom Ghebreyesus met with China's President Xi Jinping in Beijing about the coronavirus outbreak.

11 February 2020:- Novel coronavirus disease named COVID-19

1 March 2020:- UN Humanitarian Chief Mark Lowcock released US$15 million from the Central Emergency Response Fund (CERF) to WHO and UNICEF to help fund global efforts to contain the COVID-19 virus.