The pound to euro exchange rate had a difficult end to the week dropping into the higher end of the 1.13 level on the Interbank level.
The pound has clearly been affected by the sentiment surrounding the impacts of the Coronavirus and although every nation has been touched by the pandemic, sterling exchange rates came under pressure at the end of the trading week.
A big influence of the pound to euro exchange rate came towards the end of the week as the single currency began to fight back against both the pound and the US dollar.
We saw the release of slightly better than expected US manufacturing data which helped to boost optimism about the global economy and this sentiment appeared to be shared with the euro which ended the week at its best level against the pound the entire month before.
Debt concerns have also been increasing for the euro but in the short term at least the pound single currency has managed to have some gains albeit in the short term vs the Pound.
As we move forwards this week as well as the Prime Minister due to address the nation on Thursday about the proposed next phase of lockdown the Bank of England are also due to meet to reveal their latest monetary policy decision.
Interestingly, the announcement has been moved from the usual time of 12pm to as early as 7am prior to the stock markets opening in the UK. Some analysts think it is because there could be a special announcement but others including the central bank have claimed it is to allow time to also deliver the latest Financial Stability Report.
The release is due at 7am and Bank of England governor Andrew Bailey is due to address reporters straight afterwards. Therefore, Thursday could at this point be one of the most volatile days for sterling exchange rates since the beginning of lockdown.
Other news to watch out for this week will be both Eurozone Retail Sales data as well as the latest US Non-Farm Payroll data due out on Friday afternoon.
With the US dollar clearly being used as a safe haven currency during this period we could see some further movements on the US Dollar on Friday afternoon which can in turn have a big impact on Sterling exchange rates.
With Boris Johnson confirming that the UK has passed 'the peak of deaths' even though the UK has recorded a total of 28,000 deaths the figure per day appears to be dropping. This is why all eyes will be eagerly awaiting Thursday's announcement.
Turning the focus towards the US and US President Donald Trump has continued to stoke the fire between themselves and China with Trump claiming to believe that China was responsible for the outbreak. This has increased trade tensions between the two global superpowers and the US dollar has also strengthened against the pound at the end of last week.
With US growth in the first quarter falling by 4.8% this was the first fall since 2014 and highlights how deep the problem is so Friday's US jobs data could be key to how the foreign exchange markets reacts at the end of this week.
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