The Pound hit a three week high against the Euro on Thursday as it reached a high of 1.14 at the close. This rise in the Foreign Exchange rate was down to the single currency suffering due to the coronavirus. However, Sterling was also pushed forward as a result of risk sentiment improving following an increase in oil prices. However, this morning, Sterling has started the day in a weaker position against the dollar as it finished Thursday on 1.2397.
There still remains a lot of uncertainty around the way in which the European Union is responding to Coronavirus. This has caused the currency to weaken further against the pound. Along with this, there have been budgetary disagreements and that has caused investors to feel uneasy about the way in which the European monetary policy will move. However, further pressure was mounted on the Euro as the long term lows were seen throughout French, Italian, German and Eurozone-wide services and composite PMI figures.
Jobless claims came in at a record high on Thursday in the US but the Dollar still remained strong as it rose against many currencies for a second day. Investors are now looking for safety in the greenback as they prepare for a global recession.