DAILY MARKET NEWS: EU Talks Fail to Progress as Pound Gains Ground
The Pound gathered momentum on Wednesday as the currency gained ground against the Euro as the Foreign Exchange rate came in at 1.14 while it ended at 1.24 against the Dollar. The Sterling has benefited from the news that PM Boris Johnson is improving and is clinically stable.
However, the news for the Euro was not so good as there was no agreement on the financial rescue package for a second time. It seems as though both Spain and Italy are accusing the Netherlands and Germany of not doing enough while failing to agree on a rescue package could result in the demise of the bloc. The lack of agreement and action placed a lot of pressure on the single currency and this, in turn, has caused investors to believe that the economic impact on the member states is going to last a lot longer than they originally thought. The impact of this could be severe and will have an effect on the Euro exchange rate, and the subsequent knock on impact to international payments.
Optimism around the coronavirus crisis disappeared on Wednesday which resulted in the Dollar finishing strong. Investor concerns increased as news around the virus reaching its peak became apparent. However, today a number of data releases are expected for the US and this will include the jobless claims which are expected to increase significantly.