DAILY MARKET NEWS: Sterling Sees a One Month High although the Dollar Weakens
The pound finished last Friday in a strong position according to the Foreign Exchange rate as it ended the week at 1.1383 against the Euro. It ended Monday in an even stronger position with the rate reaching 1.1465. It performed similarly against the dollar, as the currency finished Friday at 1.2449 and ended Monday at 1.2514. This has undoubtedly been bolstered by the good news that the PM is continuing to make progress after leaving the hospital.
Things were not so fortunate for the Euro as the Foreign Exchange rate reached a new four week low against Sterling. This followed a failure in talks relating to a financial rescue package as a way of dealing with the financial implication of the coronavirus crisis. Eventually, an agreement was made on a last-minute package but still, there is no certainty on how this will work and how international payments will increase once again.
Improved market sentiment pushed down on the dollar again this morning, although as the end of last week approached, it was weakened following the $2.3 trillion intervention that local governments and SME’s are hoping will help them during these difficult times.