DAILY MARKET NEWS: Euro Dives Following German Court Ruling
It was a real mixed bag for the Pound yesterday as the foreign exchange rate indicated that there are still fears of a no-deal Brexit as it became clear yesterday that any trade-related talks had to be put on hold for the time being. As a result, the currency ended the day on 1.1481 against the Euro and 1.2446 against the Dollar. It is also likely that the Pound is going to face challenges today as the most recent PMI figures are likely to report a significant drop in activity in the construction sector during April.
The Euro took a dive as it reacted to the news that the European Central Bank’s bond-buying programme was considered unconstitutional following a German court ruling. This resulted in further questions being asked as to whether the European Central Bank could still work as an independent entity. As a result, there were concerns that this could stifle the current stimulus efforts in the Eurozone.
It was not a great day for the US Dollar as it had to work hard through Tuesday after demand from investors and international payments were capped. This came after an increase in optimism surrounding the economies of other countries, all of which meant that demand for the safe-haven currency dropped significantly.