DAILY MARKET NEWS: US Dollar Trades Well But a Motionless Pound Indicates Market Concerns
As Friday came to a close, the pound remained fairly motionless as the currency was feeling the effects from the concerns of no-deal Brexit. It finished the day at 1.2343 against the dollar and 1.1115 against the Euro. However, its lack of movement on the foreign exchange market was also down to the strain that Covid-19 was placing on the economy. Despite many businesses being able to open back up, it is not going to get moving quickly as consumers are still worried about the lifting of some of the lockdown measures.
It was better news for the Euro on Friday as it traded fairly strongly on the back of the latest retail figures from Germany which were higher than expected during April. However, there was more hope after it became likely that a significant fiscal boost would occur following the introduction of the recovery fund.
The US is going through a challenging period with riots and Covid-19 causing problems but the US dollar did trade in a wide range during Friday. However, the news that Trump would remove the preferential treatment for Hong Kong in the form of trade and travel and so, it is likely that international payments are going to take a hit.