Through the trading session on Thursday, market optimism ensured that the Pound remained relatively strong, despite the currency being risk-sensitive. Even the current Brexit talks couldn’t cause the Pound to experience losses, this resulted in the Pound’s foreign exchange rate finishing the day at 1.1094 against the Euro and 1.2471 against the US Dollar. It’s likely that the latest service PMI figures are likely to be better than expected given that the economy is starting to open up again, meaning that they could be revised higher.
There was little in the way of movement for the Euro on Thursday as employment figures increased across the Eurozone, despite coming in lower than expected. In similar circumstances to the UK, the Eurozone will see its own service PMI today and they will be the main focus of investors as there is a possibility that the figures could be revised higher.
The US Dollar lacked appeal to investors yesterday as payroll figures were stronger than expected, boosting marketing sentiment. However, with an increase in coronavirus cases, it’s likely that the US Dollar exchange rates are not going to improve any time soon. With states closing down again, it’s likely that the currency is at risk as the week comes to a close.