DAILY MARKET NEWS: Construction Figures Are a Big Blow for The Pound During Wednesday
The Pound had a difficult day on Wednesday as the currency struggled as a result of the construction PMI data, which came with disappointing news. The construction sector suffered its worst-ever period on record during April. This came as construction sites were forced to close following the announcement of the lockdown. As a result, the foreign exchange rate provided proof of this as the Pound came up at 1.1418 against the Euro and 1.2329 against the Dollar, the lowest rate for over a week.
It was not a good day for Euro either as the single currency took a hit following the news that German factory orders were much lower than initially expected while retail sales also slumped in March. Weighing heavy on the shoulders of the Euro are the most recent economic forecasts which are pointing towards the worst recession since the Great Depression. This is causing a lot of concern for investors who are hoping that the economy gets back on its feet so international payments can start again.
Wednesday came with more promise for the US Dollar as it edged higher as demand for the safe-haven currency increased. This improvement came after other currencies weakened, while a dampening of the market sentiment and uncertainty over the impact of the global recession remains unknown.