UK Chancellor Sunak to unveil wage bailout to help millions through coronavirus crisis – The Telegraph

The UK Chancellor Rishi Sunak is expected to undertake another bold move, as per The Telegraph, to ward off the negative implications of the coronavirus (COVID-19). The news, released amid the early Friday morning in Asia, mentioned that the UK diplomat considers effectively paying workers weekly subsidy in what would be the biggest state intervention in the economy since the war.

Key quotes

Two measures under discussion include subsidizing wages by freezing income tax payments during the crisis and giving National Insurance tax breaks.

Rishi Sunak, putting the finishing touches to the package, has also been in discussions about paying workers a weekly subsidy in what would be the biggest intervention by the British state in the economy since the Second World War. 

FX implications

Following the news, the GBP/USD pair dropped to the fresh low since 1985, 1.1438, while currently taking rounds to 1.1465. The risk-off mood gains additional strength with the news, which in turn helps the US dollar regain its strength.