DAILY MARKET NEWS: Brexit Concerns Cause Pound to Weaken
On Thursday, the Pound was still under mounting pressure after the government confirmed the lockdown would remain in place for another three weeks. Along with this, the UK government also confirmed that they would refuse any form of an extension to the Brexit transition period. This saw the currency finish the day with the foreign exchange rate coming in at 1.1492 against the Euro and 1.2481 against the dollar.
The Euro lacked any form of direction on Thursday as investors paid attention to the ways in which countries in the Eurozone plan to return to normal. While the news was welcomed by investors who are looking to restart international payments and investments, there were concerns about the guidelines from the European Commission being ignored. These concerns related to the way in which countries in the Eurozone are not working together.
After a strong rally on Wednesday, the dollar came to a grinding halt during the European session yesterday as the news about the jobless claims filtered through. With more than 22 million people now unemployed in the US, investors are now concerned about the impact of this on the economy. However, the Dollar is likely to close out the session today on a high, all of which will depend on whether the concerns of a global recession push investors to look for safe-haven currencies.