Bank of England (BOE) leaves the benchmark interest rate unchanged at 0.10%. BOE keeps the bond-purchase target unchanged at GDB 645 billion. The GBP/USD moved to session high 1.2410 after the news.
The UK construction PMI slumps to the record low of 8.2 in April vs. 22 expected, prior to 39.3. The data marked the lowest reading since April 1997. The report includes all three main areas, house building (7.3), commercial (7.7) & civil engineering (14.6) all sectors declined due to the coronavirus-related business closures last month. GBPUSD fell to a new weekly low of 1.2360 after worse-than-expected PMI numbers.
The main focus will be on the Coronavirus updates, Bank of England rate decision, Reserve Bank of Australia interest rate decision and US Non-Farm Payrolls. Apart from this, a new round of the trade war is a very significant factor in the current macroeconomic picture.
Gilead Sciences announced on Wednesday an experimental drug, Remdesvir, has proved effective against the new Coronavirus and preliminary results showed that 50 per cent of the COVID-19 patients treated with a 5-day dosage of remdesivir improved and more than half were discharged from the hospital within two weeks.
The two days FOMC meeting that began Tuesday, and concludes with a statement and a press conference due later today. The Fed is widely expected to leave interest rates unchanged. The investors and traders will closely watch the updates from the U.S. Federal Reserve for clues on how long the interest rates could remain at the present low levels. The central bank scheduled to issue its policy statement at 18.00 GMT.