DAILY MARKET NEWS: Struggles for The US Dollar But Positive Strides for the Pound
Thursday came with some marginal increases for the Pound as the currency crept higher according to the Foreign Exchange rate. There are still concerns about the way in which Brexit negotiations are progressing as well as the potential negative interest rates that the Bank of England might introduce. Asa result, the Pound finished the day at 1.1125 against the Euro and 1.232 against the US Dollar. The concerns surrounding Brexit negotiations are likely to play a part in the way in which the Pound performs moving through Friday.
During the trading session on Thursday, things were fairly positive for the Euro as investors are encouraged by the coronavirus relief fund. Despite this, it is likely that inflation during May dropped to 0.1% and that could prove a challenge for the single currency.
Disappointing economic data resulted in the US Dollar trending lower on Thursday, and this pointed to the fact that the first quarter had contracted more than they had expected to 5%. Piling on more pressure is a drop in order for goods as they dropped to a five year low, proving that Covid-19 really had hit the US economy hard.