DAILY MARKET NEWS: Pound Starts Strong Although the Dollar Stumbles Through the Day
Rounding off Monday at 1.1476 against the Euro and 1.2425, the pound started the week from a strong position as the return of Boris Johnson boosted confidence in investors.
Despite these promising signs in the foreign exchange rates, the currency failed to make any real gains which has been put down to the fact that the Prime Minister made it quite clear that the lockdown is not going to be relaxed too soon.
However, some of the gains made might take a backwards step today as the Confederation of British Industry’s distributive trade index is published.
The Euro showed some positive signs on Monday and ended the day at 1.0827 against the dollar. Investors took positives from the fact that many of the worst-hit countries during the Covid-19 outbreak in Spain, France and Italy are slowly lifting some of the restrictions. As this happens, there is hope that investments and international payments will take a step forward, underpinning a recovery in the economy in the Eurozone.
The US Dollar made a slow start on Monday and things did not improve throughout the session after a positive mood caused demand for the safe-haven to slow. This is down to the drop in new cases of Covid-19 and improvement in market sentiment, particularly as economies look as though they could get moving once again.