DAILY MARKET NEWS: Pound Enjoys a Busy Day Although the Euro and Dollar Suffer
The pound rounded off Thursday at 1.1498 against the Euro and 1.2582 against the dollar, as the currency experienced some decent gains. This was helped particularly by the fact the UK government is going to be publishing a comprehensive plan next week on how it plans to kickstart the economy again. News that will bolster hope in investors and encourage international payments and investments.
Things were not so positive for the Euro as the single currency really did not fare well as the foreign exchange rates indicate. The fall came after news of the Eurozone economy contracting during the first quarter of the year. The losses were not helped by the fact that there are signs that the Eurozone GDP could shrink by 12% this year following comments from Christine Lagarde after the most recent policy meeting of the European Central Bank.
It wasn’t good news for the US dollar on Thursday either as it struggled to gain any traction as current unemployment really caused problems for the currency and market sentiment. The released data indicated that the US had suffered from another significant rise in jobless claims and that has resulted in investors becoming concerned about the economy and how it is going to bounce back from these unprecedented times.