Let's be frank

‘Jay Powell warns US recovery could take until end of 2021’. The Chairman of the US Federal Reserve has given a clear warning that the US economy will not recover until a full level of confidence is restored, and this will likely hinge on the arrival of a Covid-19 vaccine. Provided that there is not a second wave of the virus, Powell stated that the US economic recovery will steadily improve throughout the second half of this year, but may not be complete until some point in 2021. (Financial Times)
‘Trump aide accuses China of using travellers to "seed’ virus"'. President Trump’s administration has stepped up its campaign of blaming China for the spread of the coronavirus pandemic after a top aide accused Beijing of sending airline passengers to spread the infection worldwide. White House trade adviser, Peter Navarro, said that China hid the virus from the world for two months allowing travel to future outbreak centres in Milan and New York. (Bloomberg)

Despite Chairman Powell’s gloomy statement on the US’s economic recovery, markets were broadly higher overnight and to begin the week. Oil prices rose, with Brent Crude climbing over $30 a barrel for the first time in two months. Stocks in Asia rose along with US and European equity futures. The Pound dipped after it emerged that policymakers are examining unconventional tools, including negative interest rates.

Japan’s preliminary Q1 GDP -0.9% vs -1.8% previously
BoE MPC member Tenreyro Speaks 4.00pm

GBP/USD: 1.2105
GBP/EUR: 1.1185
EUR/USD: 1.0825