Sterling Looking Vulnerable As Week Draws to a Close
Financial markets were incredibly lively across Thursday’s trading session. The main talking point was a huge turn around in global stock indices which had racked up losses of around 1.5% – 2%, only to have a large intraday reversal, seeing them close in the green. Currencies were a little less active, the greenback held its ground while sterling continued to look weak.
The pound has encountered a noticeably soft week of trade, surrendering almost 2% against both the euro and US dollar. Data-wise, Q1 2020 GDP was not as bad as expected which was a similar case for manufacturing production. However, after another week of Brexit talks with the EU, little progress has been made. In fact, there’s essentially been no movement on the main disagreements since day one. Just one more round of negotiations remain until politicians meet in June to decide whether it’s worth carrying on. Watch this space…
Yesterday another 2.98 million Americans were shown to have lost their jobs in the last week. This brings the total up to a staggering 36.5 million since the virus began. Today’s economic calendar is quite busy; we start off with regional and collective eurozone GDP prints for Q1. These are followed up by US April retail sales at lunchtime. A number which many will be watching closely to gauge the economic impact of the virus so far. The afternoon session will see US manufacturing/industrial production as well as consumer sentiment numbers. A busy end to what’s been an interesting week.
Have a good weekend and stay safe.
Written by Viv Savani. 9:28am, May 15th 2020
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.