News & analysis

Since the outbreak of the coronavirus in late December and the resulting quarantine of Wuhan on January 23rd, COVID-19 has rapidly spread across the globe with over 380,000 cases confirmed globally, to date. 

International travel was slowly restricted and has practically ground to a halt now, while social distancing measures have been implemented across the board. In more extreme cases, quarantine measures have been implemented to the level we witnessed in Asia and now mainland Europe and parts of America. These measures will undoubtedly cause a collapse in social consumption, pushing retail, leisure and travel industries into the red.

The economic toll of the virus and its corresponding containment measures is undoubtedly going to be large.

Some preliminary GDP forecasts by investment banks place US Q2 GDP between -12% and -30% in annualized terms, with other developed economies also expected to contract at sharp rates. With a global recession approaching, markets have rushed for USD liquidity for a multitude of reasons. This has led not only to a strong dollar but also strains global money markets, prompting the Federal Reserve to intervene with both domestic and international lending programs to appease the strain in credit access.

Additionally, fiscal stimulus measures have blown post-financial crisis rulebooks to smithereens with many governments releasing aid packages to SME’s while the prospect of helicopter money is seemingly on the horizon. These are unprecedented times and the speed of the response has been dramatic. Many are likening the collapse in the global economy to the Great Depression of 1920 as opposed to the Financial Crisis of 2008 due to its rapid onset and far-reaching consequences.

With this in mind, we have kept a track of all of the fiscal and monetary measures put in place by governments and central banks in the G10 since the onset of the virus below:


Simon Harvey, FX Market Analyst
Olivia Alvarez Mendez, FX Market Analyst



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