DAILY MARKET NEWS: Struggles For the Euro While the Pound Steadies Itself
The Pound didn’t start the week off in particularly good form on Monday as the currency experienced broad losses. This came as reports filtered through that reducing the lockdown restriction is not a popular move with the UK government. The news came through that Boris Johnson was not keen on the ideas as it could lead to a second spike in the virus. What this meant was that sentiment weakened as investors came to terms with the potential impact this would have on the UK economy and international payments. As a result, the foreign exchange rate for the Pound against the Euro finished the day at 1.1452 and 1.2442 against the dollar.
Monday did not come with much movement for the Euro either and again, Coronavirus and the fiscal response is pivotal to how the currency is performing. Today, investors will have one eye on the ZEW surveys and that is likely to come with a drop in economic sentiment in the Euro.
Through yesterday’s session, the US Dollar rallied as the significant collapse in US oil left nervous investors running for the safe-haven currency. Along with this, ongoing concerns relating to the coronavirus pandemic are keeping USD exchange rates afloat.