DAILY MARKET NEWS: Defensive Pound and Steady Euro Overshadow Struggling Dollar
Tuesday was a day of mixed fortunes for the Pound as it found itself on the defensive following the release of the most recent distributive trends index from the Confederation of British Industry. It found that the retail industry saw a drop of 71% in sales and that had a big impact on the currency as seen by the Foreign Exchange rates. The currency finished the day at 1.1476 against the Euro and 1.2426 against the US Dollar.
The Euro remained relatively steady as news of France and Spain re-opening parts of their economy in May bolstered confidence and hope. However, news of an increase in infection rates in Germany could have caused problems and it might still have an impact on the sentiment of investors and international payments too. It could be a challenging day today for the single currency as the Eurozone’s business confidence survey is likely to bring with it bad news.
Improved market sentiment brought with it a drop in demand for the US dollar and so, it experienced some losses through Tuesday. This upturn in sentiment comes at a time when investors are hopeful that some countries are re-opening their economies.