The pound retreated on Thursday after the Bank of England (BoE) struck a more cautious tone than expected following its latest policy meeting.
Growing tensions between Germany and Italy, which has suffered the greatest impact of the Covid-19 crisis so far, left the single currency with little cause for confidence.
March’s finalised set of Eurozone manufacturing and services PMIs also weighed on the appeal of the euro, highlighting the threat of a major recession on the horizon.
While the Eurozone unemployment rate saw a surprise improvement in February this was not enough to offer any degree of reassurance to EUR exchange rates.
If German industrial production continues to show signs of decline this could cast a fresh shadow over the single currency this week.
Further evidence of weakness within the Eurozone’s powerhouse economy would increase the odds of a major economic downturn.
Unless February’s raft of German trade data can show a significant uptick in export volumes and trade activity worries over the health of the economy look set to drag the euro lower.
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)