DAILY MARKET NEWS: Growth Concerns Cause Sterling to Weaken
As the lockdown measures in the UK look to remain in place for the foreseeable future, Sterling reached one-week highs against the dollar and the euro on Tuesday. The pound ended the day at 1.1493 against the euro and 1.26 against the dollar according to the Foreign Exchange rate. Despite this, the currency started off today in a weaker position as it is showing signs that it is moving with market sentiment while the effect that Covid-19 is having on the UK economy is also likely to cause problems.
In Europe, the 500 billion emergency loan finance package has been agreed as a way of dealing with the economic problems caused by Covid-19 while also attempting to stimulate international payments and market movement. However, the euro did finish the day stronger against the dollar at 1.0983.
As global risk sentiment improved yesterday, the dollar was weaker and that means that investors are now moving away from safe-haven currencies. Despite this, the dollar did begin today in a stronger position this morning as a result of current global economic concerns. Due to be released today are the March retail figures and these are likely to show a significant drop as a result of the lockdown measures that are in place.