DAILY MARKET NEWS: PMI Data Stops Sterling in its Tracks but Dollar Stays in a Good Position
After several weeks of performing relatively well, the Pound eventually slowed down last Friday. As the currency lost its momentum, it weakened against the Euro and the Dollar and dropped to 1.13 and 1.22 respectively. The decrease in the foreign exchange rate is attributed to the way in which the PMI data indicated that the Services and Manufacturing industries had dropped to an all-time low. As this week begins, the publication of the UK’s construction PMI could add additional pressure on the pound.
The Euro saw a real mix when it came to trading and international payments at the end of the session last week. The single currency, however, did make strides against some of the weaker currencies out there and this was put down to the retail sales performing extremely well in the Eurozone during February.
Along with this, the US Dollar finished the session last week in a good position where its recent rally was extended. Even a larger than expected increase in non-farm payrolls during March didn’t slow it down. The economists forecast a payroll contraction of 100,000 but it actually reached 700,000 which is a lot worse than initially expected. However, this failed to stop the US Dollar in its tracks as fears of the Coronavirus made sure that the safe-haven currency was still favoured by investors.