The Pound made some slight gains on Thursday after the currency reacted to the possibility that the peak of the Coronavirus had been reached. However, it wasn’t all good as any gains was restrained by the news that the private sector experienced a deeper slump than originally expected. As a result, the currency reached 1.1458 against the Euro and 1.2353 against the Dollar according to the Foreign Exchange rates.
The Euro remained directionless yesterday as international payments and Eurozone economic activity shrunk at a faster rate than expected during April. Again, the failure to agree a significant fiscal package has also placed mounting pressure on the single currency. However, as Friday opened, there were indications that the Euro could struggle again as Germany is likely to indicate that business sentiment dropped to new lows in April.
Jobless claims increased in the US and that left investors cautious, causing the Dollar to slip behind again. The safe-haven currency has lost some appeal too as investors have one eye on the potential lifting of lockdown measure which meant that many major economies could start up again, helping to improve market sentiment.