Economy Recovery Hope Boost The Pound
Hopes of the UK economy opening further helped the pound to gather pace through trading on Monday. The currency, according to the foreign exchange rate finished the day at 1.1079 against the Euro, improving on last weeks closing rate. It was much the same against the US Dollar too, as the Pound rounded off the day at 1.2491, another healthy improvement compared to the end of Friday. As Boris Johnson plans to reduce the social distancing rules and announce the opening of the hospitality sector, investors are hoping that this could be the kick start that the economy needs in the UK.
It was a varied day for the Euro on Monday as any gains were held back by the news that there was still no agreement made on the EU coronavirus recovery fund. Despite this, there was a glimmer of hope during the afternoon as the consumer sentiment index in the Eurozone indicated that improvements had been made.
Despite an improving market mood, the US Dollar struggled and this was not helped by news that the latest domestic housing figures indicated that home sales dropped significantly during May. Improvements in the private sector could see the US Dollar meet with some uncertainty through trading on Tuesday.