Global Reach is becoming Corpay Cross Border, part of FLEETCOR, to broaden our client offering. Please contact our team or visit to find out more.

An uncertain future

Today’s news headlines:

  • ‘US says Hong Kong is no longer autonomous from China'. Yesterday, Secretary of State, Mike Pompeo said that the US no longer considers Hong Kong an autonomous region, following China’s continued removal of the freedoms of Hong Kong citizens. The move threatens the immediate future of the financial hub as the US may withdraw its special trade status from the region. What’s more concerning is that we may see a flight of capital and expats from the region, potentially accelerating the city’s absorption into the Chinese mainland. (Financial Times)

  • ‘Coronavirus hit to Eurozone economy set to dwarf financial crisis’. European Central Bank President, Christine Lagarde, has warned that the Eurozone economy will shrink by around 8 to 12 percent this year due to the sudden stop of activity caused by the coronavirus pandemic. This recession will be almost twice as deep as the one following the 2008 financial crisis, where the Eurozone economy shrank by 4 to 5 percent. Investors anticipate that the ECB will step up its support in next week’s meeting by adding significantly to its asset-purchase programme. (Financial Times)

Today's events, rates, and data 

  • Sterling fell 1% yesterday as fears over Brexit and future Bank of England monetary policy persisted. Market sentiment was dented due to the Hong Kong story and a 3% slide in Brent Crude after a report showed that US crude inventories increased for the first time in three weeks. Heading into today, European and US stock futures are trending higher, after the EU unveiled a €750bn stimulus package yesterday.

Today's events

BoE MPC member Saunders speaks                   11:00am
US preliminary q/q GDP                                        1.30pm
US Durable and Core Durable Goods Orders     1.30pm
US Weekly Jobless Claims                                    1.30pm

Interbank rates:

GBP/USD: 1.2265
GBP/EUR: 1.1135
EUR/USD: 1.1016