Yesterday was a rough day for the pound as it became increasingly clear that the Prime Minister, Theresa May, was living on borrowed time. Following the almost universal rejection of her ‘new’ EU withdrawal deal, pressure mounted on her to resign.
At just 44.7 the manufacturing PMI hit its lowest level in more than six and a half years, raising fresh concerns over the health of the Eurozone’s powerhouse economy.
As the manufacturing index has now fallen for 14 out of the last 15 months investors were left with little cause for confidence in the single currency ahead of the weekend.
This underwhelming data is likely to add to the cautiousness of European Central Bank (ECB) policymakers, raising the risk of the central bank returning to a monetary loosening bias in the months ahead.
Demand for the euro could ease further this week if March’s German inflation data fails to show an improvement on the year.
Evidence that inflationary pressure across the Eurozone is continuing to ease would give investors fresh incentive to pile out of the single currency, leaving EUR exchange rates under pressure.
Comments from ECB policymakers may also drive the euro down across the board in the near term.
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)