DAILY MARKET NEWS: A Slow Day for the Pound Although There is Fresh Hope for The Euro
It was a fairly unstable day on Wednesday for the Pound as it reacted to the news that the Bank of England may have to introduce negative interest rates. Along with this, the UK consumer price index dropped sharper than expected and so, it is likely that some form of action is going to be taken by the Bank of England. As a result, the Foreign Exchange rate for the currency came in at 1.1147 against the Euro and 1.2239 against the US dollar.
Investors and companies who operate cross-border are eager to begin making international payments once again when it comes to the Euro, but the currency is still struggling to gather momentum. Through Wednesday, there were some improvements as France and Germany both agreed a common fund as a way of dealing with the impact that Covid-19 has had on the economy. The Euro also gathered further support from the news that the May Eurozone consumer confidence index made unexpected improvements.
It was a mixed day for the US Dollar as it was riding on the release of the minutes from the policy meeting of the Federal Reserve. The possibility of a second wave has meant that the US economy could be hit with further problems that could continue into 2021.