DAILY MARKET NEWS: Improvements for the Euro After Expansion of PEPP Scheme
Confidence in the Pound was fairly sluggish through trading on Thursday as the currency was still being pushed down by the fact that a Brexit trade deal is looking unlikely. However, there was some hope after the latest construction PMI indicated that there was a slight improvement after a dismal April. As a result, the Foreign Exchange rate against the Euro dropped to 1.1113 while it did improve against the US dollar finishing the day at 1.2599.
It was a good day for the Euro and investors looking to make international payments as the Pandemic Emergency Programme was expanded by the European Central Bank. The scheme was increased by €600bn which was more than expected. Despite this good news, the Euro might end the day on the back foot after Germany reported a significant drop in factory orders.
As tensions between the US and China eased slightly, the US Dollar made a good start as demand for the currency increased. However, the latter part of the session saw these gains disappear after job losses increased at a faster rate than expected, while the release of the US payroll figures are going to have an impact on its performance today.