DAILY MARKET NEWS: Record GDP Slump Leaves Pound on the Back Foot
It was a relatively quiet end to the week for the Pound following the news that the UK economy had shrunk by over 20% during April. As a result, the currency finished Friday at 1.1145 against the Euro and 1.2545 against the US Dollar according to the foreign exchange rates. However, this didn’t stop investors making international payments as they placed a focus on how quickly the UK economy can recover, especially as the latest figures indicate the performance of the economy during the first month of lockdown. The rate decision from the Bank of England could determine how the currency responds this week although the opening of all non-essential shops could see things move in the right direction.
The Euro struggled on Friday as some disappointing industrial figures resulted in a lack of support. Again, the figures indicated a 17.1% drop in factory output although this was during April when the entire economy was at a standstill.
It was a change of fortune for the US Dollar, however, after investors flocked to the safe-haven currency on Thursday. The losses were short-lived as US consumer sentiment was better than expected, causing the dollar to recover some of those losses.