A -2.6% monthly GDP contraction weighed heavily on the pound as worries over the UK’s economic outlook picked up again.
The euro found support at the start of last week with better-than-expected PMI figures from the Eurozone this month.
Euro gains were capped, however, by the US threatening to impose tariffs on $3.1bn worth of EU goods.
As EU officials continue to work towards stimulus and recovery plans to help the Eurozone handle the coronavirus pandemic, markets are relatively optimistic about the Eurozone outlook.
This is helping the Euro to advance over currencies correlated to markets with bigger coronavirus infection rates. For example, the Euro is still benefitting from weakness in the US dollar (USD) as US coronavirus infections soar.
The latest Eurozone inflation data was also boosted optimism in markets. It showed a surprise uptick in inflation to 0.3% year-on-year from 0.1% as Eurozone economies began to reopen.
June’s final Eurozone PMIs, due tomorrow through to Friday will give investors a better idea of how the Eurozone economy performed amid the coronavirus pandemic over the past month.
Looking ahead, markets will keep a close eye on developments in EU fiscal stimulus while any weakness in the US Dollar (USD) is also likely to further buoy the Euro.
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)