DAILY MARKET NEWS: US Dollar Rocked by Civil Unrest Although Pound Regains Some Ground
Things looked slightly more promising for the Pound on Monday as it gathered some momentum following the most recent manufacturing PMI. The figures released met expectations and that boosted the currency yesterday. There is still hope that the economy is awakening slowly and that things will begin to pick up slightly as the weeks roll on. However, today, Brexit talks are likely to cause problems but yesterday saw the foreign exchange rate come in at 1.1215 against the Euro and 1.2485 against the US Dollar
Fresh hope that the European Central Bank would improve its quantitative easing programme this week gave the single currency a short boost on Monday. However, the gains were lost as the Eurozone manufacturing figures were weaker than expected. Along with this, international payments and investment in assets also slowed down, hitting exchange rates hard.
Protests and riots continued to wreak havoc for the US Dollar on Monday. This is the worst civil unrest seen since 1968 and it is having a negative impact on the economy. As a result, investors were making the decision to avoid the safe-haven currency while factory growth in the country fell short of what was expected, to add further to the misery.