DAILY MARKET NEWS: Further Woes for the Pound After Consumer Spending Drops Again
Thursday didn’t come with much change for the Pound as it struggled again. Even better-than-expected manufacturing and services PMI could not turn its fortunes around. As a result, it finished the day at 1.2225 against the US Dollar and 1.1163 against the Euro. The UK economy is heading for relatively large slowdown during the second quarter. Along with this, investors are losing confidence in the currency and this is proven by the current Foreign Exchange rates.
It was a mixed day for the Euro as the PMI report indicated that the service sector in the Eurozone improved during May. However, there is not likely to be any good news on the horizon as there is no prospect of the sector experiencing any form of growth in the near future. The lockdown restrictions are still easing throughout the Eurozone and that could see an increase in international payments and interest from investors.
The US Dollar benefited from the tensions with China as investors were looking to take shelter in some safe-haven currencies. Despite an increase in jobless claims, the US Dollar refused to budge and so, any movement in the currency will be in reaction to the change in risk appetite.