DAILY MARKET NEWS: Dollar and Euro Power On As Pound Weakens
During trading on Wednesday, the Pound lost some of the gains it had made and so it weakened against both the Euro and the US Dollar. Finishing the day at 1.1136 and 1.2263 respectively, the currency had lost momentum as indicated by the Foreign Exchange market. However, things are not likely to get much better after Andrew Bailer, the Governor of the Bank of England, has stated that the UK is entering the second phase of the crisis with economic risks still apparent.
In contrast, the Euro made a forward step yesterday after there was hope that the economic rescue package negotiations might be coming to an end. However, things are looking bleak for the Eurozone economy as international payments and investors are likely to hold back based on the expectations of an 8-13% contraction.
The Dollar also made progress as the Pound weakened after a lack of optimism on Brexit trade talks. There had been improvements in mortgage applications in the US although today we are expecting to see GDP to have contracted as expected. Despite this, the Federal Reserve has said that the economy has almost hit rock bottom but it is ready to rebound and bounce back, news that might please investors.