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- Pound gains for sixth day before services PMI
- Division over Eurozone shared debt proposal drags on euro
- US dollar stands firm in spite of record surge in jobless claims
Pound vulnerable to UK services PMI revision
The pound maintained its upward trajectory on Thursday, with the currency extending its rally into its sixth consecutive session.
However, the pound could face some headwinds this morning with the publication of the UK’s latest services PMI. March’s finalised figures are likely to be revised lower as they also take into account the period since the countrywide lockdown.
GBP investors will still be keeping a close eye on coronavirus developments amid ongoing speculation the government could impose stricter restrictions.
Euro slumps as cracks begin to show in the EU
The euro continued pushing lower on Thursday as markets grow increasingly concerned about the unity of the EU over its failure to deliver a cohesive response to the coronavirus outbreak.
EUR investors were mostly concerned by political infighting between members over the issuing of so-called ‘coronabonds’ as Germany and the Netherlands are resistant to accept the risks posed by joint debt.
We are likely to see the euro continue trending lower as long as EU leaders are at loggerheads over how to tackle the financial damaged caused by the coronavirus.
US payrolls data in the spotlight
The US dollar accelerated though yesterday’s session in spite of a gargantuan rise in US unemployment claims.
The US Department of Labor reported initial jobless claims jumped by a record 6.6 million last week, dwarfing the record of 3.2 million set the week prior as the coronavirus resulted in massive layoffs.
The US jobs market will be in the spotlight again today with the publication of the latest US payroll report.
This could dampen the appeal of the US dollar if the highly influential releases confirms fears of a sharp contraction in employment growth last month.
Friday, 3rd April 2020
09:30 GBP Services PMI
10:00 EUR Eurozone Retail Sales
13:30 USD Non-Farm Payrolls
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)