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On 9 March 2020 the value of GBP vs USD was 1.31 USD/GBP. 10 days later, on 19 March 2020 it plunged dramatically to 1.1437

  1. On 9 March 2020 the value of GBP vs USD was 1.31 USD/GBP. 10 days later, on 19 March 2020 it plunged dramatically to 1.1437 USD/GBP. 11 days later, on 30 March 2020, GBP appreciated to 1.24. Please explain analytically the main reasons for these changes within one month.
  2. What will be your interpretation if a long-term GBP/USD exchange rate forecast was done using both PPP and IRP methods, with value for the PPP being $1.2425/1.00 and IRP value being $1.2281/1.00?

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