GBP/USD has dropped below the key 1.30 level once again and is trading cautious early on Wednesday as markets await Britain’s budget due to be released today, especially updates on measures to protect the economy against risks of the coronavirus. At the time of writing, GBP/USD is trading at around 1.293.

In addition, GBP/USD also gave up its gains from the past couple of days as the US government proposed stimulus measures to protect its economy from the potential impact of the coronavirus. Meanwhile, markets have received no such clarity from the British government or the central bank, driving weakness in the pound.

Expectations are high that the new finance minister Rishi Sunak will unveil higher public spending measures in a bid to boost the economy, but it remains to be seen how effective they will be in countering the risks of the outbreak. Markets are also anticipating that the Bank of England could give in to pressure and ease rates, driving additional bearishness in GBP/USD.

So far, the BOE has held its interest rates steady despite other peers resorting to rate cuts in the wake of the growing economic threat of the coronavirus. However, Britain has confirmed over 370 cases of infection while the death toll has climbed to six so far, even as travel restrictions across the world also weigh on the sentiment.