DAILY MARKET NEWS: Pound Benefits From Improved Market Sentiment
Improved market sentiment helped the pound to bounce back on Wednesday. Despite news that the UK is going to be hit hardest out of all of the most developed countries according to the Organization for Development and Cooperation, the currency still performed well. It is going to be the latest GDP release that is likely to be the focus today, although the pound finished Wednesday at 1.2742 against the US Dollar and 1.1199 against the Euro.
It was a fairly subdued day for Euro on Wednesday as a lack of economic data left it motionless. Despite this, the single currency was still propped up with fresh hope that the economy will be back to normal quicker than expected, and this means that investors are likely to begin making more international payments.
The Federal Reserve decided to put a hold on interest rates on Wednesday and this meant that the US Dollar trended lower in response. This came as a surprise to investors, especially as the federal reserve stated that it was not even considering increasing rates while there were also warnings about increased unemployment numbers. However, there is hope that the US Dollar will be boosted by a possible slowdown in unemployment claims.