DAILY MARKET NEWS: Trade War Fears Edges the Dollar Forward
There was not a lot of movement for the Pound through Thursday as the trading session was met with trepidation following comments from the Bank of England. The bank has said that it will not be reducing interest rates below zero but it might consider expanding the stimulus programme. As a result, the currency ended the day with the foreign exchange rates showing it sitting at 1.2226 against the US Dollar and 1.1318 against the Euro.
It was a fairly similar story for the Euro too as the latest inflation figures from Germany were revised from 0.3% to 0.4% and this provided very little in the way of support for the currency although investors are waiting on the first-quarter GDP estimate from Germany as that could have an impact on the investors and international payments too.
The US Dollar ticked higher as it moved through the session on Thursday as the safe-haven currency saw an influx of investors following increasing tensions between China and the US. There are concerns about a trade war following comments from President Trump relating to the way in which the country handled the outbreak of Covid-19. Despite this, there is hope that the Dollar might retrieve some of those gains through today.