DAILY MARKET NEWS: Lockdown Measures Help Pound to Strengthen
Following the new quarantine measures, the pound strengthened yesterday, as markets hope that the new measures help to curb Covid-19.
Despite the latest PMI figures in the UK showing that the private sector had really taken a knock, Sterling currency rocketed. However, it is likely that the pound is going to receive even more support following the release of the CPI figures. The figures show that inflation aligned itself with the expectations last month.
Along with this, the Euro also increased despite there being a drop in business growth this month providing some light relief for those making international payments. However, the figures were a cause for concern as the Eurozone economy shrunk by 2% during the first quarter.
In the US, it was a different story as the US dollar exchange rate fell significantly. This was due to the easing of fears following the central banks decision to enhance liquidity. However, the warning from WHO which says that the US is close to becoming the new epicentre of the coronavirus outbreak has also held the US Dollar back. Despite this, there is every possibility that the US dollar might make up some ground today as market sentiment continues to improve.