DAILY MARKET NEWS: Weak Euro and Pound Struggle Although The Dollar Rallies Slightly
As Tuesday begun, the pound found itself in a weaker position than it found itself in on Monday. This was down to the weak Euro with the rate falling below 1.12 while it also came in under 1.23 against the US dollar according to the Foreign Exchange market. The weakening of the pound today is also down to the way in which the economy has stagnated, showing that the quarterly growth has come to a grinding halt. Along with this, consumer confidence also fell, giving the currency a short, sharp shock for the time being.
So, the Euro ended Monday in a weak position against the pound as the currency felt the impact of data indicating that business sentiment was a lot lower than they expected. However, the GDP figures released today also indicated that yearly growth dropped to almost 1%.
The dollar did rally on Monday against many of the major currencies. This alluded to the concerns that surround the spread of Covid-19 and the way in which it continues to impact the economy and control the foreign exchange markets. As the US has now been considered the latest epicentre of the virus, things are still looking bleak. However, new Chinese factory data indicates a small lift this morning, which could point towards encouraging signs for international payments and growth. However, it is unlikely that this is going to ease any concerns in the markets for the time being.