On 13 June, the UK government revealed legislation that would allow it to scrap parts of the Northern Ireland protocol.
- UK PM admitted to intensive care
- German factory orders and industrial output decline
- US dollar falls as risk appetite returns
Pound recovers initial losses after PM moved to intensive care
Support for the pound weakened yesterday in the wake of a sharp decline in the GfK consumer confidence index.
Sentiment plunged to -34, increasing concerns about the UK’s economic outlook.
Later in the evening the pound came under additional pressure as the Prime Minister was moved to intensive care as a precautionary measure.
Sterling recovered much of its losses overnight however and has surged against a broadly weakening US dollar.
Euro pressured by declining German factory orders
While the euro has benefited from the decline in the US dollar, the currency’s gains have been capped by a decline in German factory orders and construction output.
The common currency has dipped against the pound and higher-risk currencies like the Australian and New Zealand dollars, but has strengthened by over half a cent against the US dollar.
Rising risk appetite weakens US dollar
The US dollar plummeted against its major rivals as risk appetite returned to the currency market.
Demand for safe-haven assets fell as China reported no new coronavirus fatalities, while Italy and Spain both registered a decline in new cases.
As long as reports support the hope that the crisis has plateaued in some areas the US dollar could extend losses in the days ahead.
Tuesday, 7th April 2020
09:30 GBP Labour Productivity
15:00 CAD Ivey PMI
15:00 USD JOLTs Job Openings
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)