DAILY MARKET NEWS: Record GDP Drop Sees The Pound Face Struggles
The Pound suffered throughout the session on Thursday as the currency reacted to a downturn in market sentiment. At the moment, the currency is extremely volatile as Brexit negotiations are still ongoing and the impact that coronavirus has had on the economy is still causing problems. Therefore, the foreign exchange rate indicates that the Pound finished the day at 1.1138 against the Euro and 1.2582 against the US Dollar. What’s more, the news that the economy shrunk with GDP dropping by 20.4%, it is likely to have a big impact on the global markets
It was a tough day for the Euro too as the single currency was weakened following a surge to buy Us Dollars. However, there was news on the coronavirus recovery fund either and that weighed heavily on the currency.
The US Dollar performed very well on Thursday as it increased above many of its peers as many investors chose to take advantage of the save haven currency. Despite this, the Federal Reserve made some fairly concerning forecasts recently and that reduced some of the optimism relating to a strong recovery for the global economy. However, improvements in household confidence could see the US Dollar perform well again today.