Service update:We’re operating normally, without disruption to service, security or normal transfer times. Need help? Get in touch here

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

USD gains despite surge in unemployment, EUR puts on mixed performance

business-articlesUSD gains despite surge in unemployment, EUR puts on mixed performance
  • Pound’s run of gains comes to an end
  • Euro fluctuates as EU’s response to the coronavirus prompts concern
  • US dollar extends uptrend in spite of payrolls disappointment
 
 
GBP rally runs out of steam
 
A downward revision to the finalised UK services PMI for March left the pound on a weaker footing heading into the weekend.
 
The PMI dropped from 53.2 to 34.5, representing the sharpest monthly decline in the report’s history and stoking fresh anxiety over the economic outlook.
 
With the UK economy looking set to experience a major downturn in the first quarter, which it may struggle to rebound from, GBP exchange rates were left on the back foot.
 
A negative revision in the UK’s construction PMI could add to the pressure on the pound this morning.
 
 
EU response to coronavirus crisis in the spotlight
 
Trade in the euro was mixed at the end of last week, with some upbeat retail sales figures offering support to the single currency, while ongoing concerns over EU fiscal unity capped the upside in the single currency.
 
EUR investors will remain focused on the EU’s fiscal response to the crisis, with the situation potentially driving the euro lower unless leaders are able to reach an agreement over the issuing of joint debt.
 
 
US dollar gains despite massive decline in US employment
 
The US dollar continued pushing higher on Friday as safe-have demand was bolstered by coronavirus jitters.
 
This came in spite of US payrolls printing far weaker-than-expected last month, with a decade low contraction of 700,000 against estimates of a more modest decline of 100,000.
 
In fact the abysmal data spurred demand for the US dollar as it heightened concerns over the damage the coronavirus will do to the global economy. Analysts at TD Securities noted:
 
‘Once the dust settles and the recessionary mindset is now afoot, the USD is still the best of a bad lot. We struggle to think that any of the majors poses a threat to the depth and liquidity of the world's reserve currency.’
 
With Coronavirus remaining in the spotlight the US dollar is likely to maintain its dominance as safe-haven demand persists.
 
Upcoming Data:
 
Monday, 6th April 2020
14:30 CAD Bank of Canada Business Outlook Survey
15:00 USD Consumer Inflation Expectations
 
 
Philip McHugh

Philip McHugh

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)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.