The pound to euro exchange rate is clawing back gains after slumping to a two-week low mid-week. Yesterday, GBP traded to a relatively tight range with the common currency. However, this morning the exchange rate is up on yesterday’s as the last full trading week of April comes to an end.
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Coronavirus reports continue to interest investors as the pandemic rages on.
There are currently over 2.7 million cases of the virus globally.
The UK has 153,246 reported cases at the time of writing.
Tragically, there have been 18,738 deaths in the country.
Investors continue to monitor to other data, too, however.
This week, the latest PMI surveys indicated record-low levels of economic output on both sides of the Channel.
On Wednesday, it was revealed that the UK’s inflation rate had fallen to 1.5 percent in March.
This was mainly driven by falls in the price of clothing and fuel ahead of the coronavirus lockdown.
As for today’s data, the UK retail sales print is due out – although experts predict little impact from this.
The pound is currently trading at 1.1459 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling trod water against the common currency on Thursday, trading within a relatively tight range for the duration of the trading day,” said Brown.
- Pound to euro exchange rate rises after slumping to two-week low
“[This was] despite the latest PMI surveys pointing to record-low levels of economic output on both sides of the Channel.
“Today, investors will continue to monitor the latest coronavirus reports while this morning’s UK retail sales print shouldn’t be much of a market mover.”
Jeremy Thomson Cook, Chief Economist at Equals also shared his expert comment on the current economic situation – and prediction for the rest of 2020.
“With the UK apparently passing the peak of Covid-19 infections in the past week or so, the conversation has moved from the imposition of a lockdown towards the prospect of relaxing some of the measures,” he said.
“However, shutting an economy down is a lot easier than opening one back up; and nobody is advocating a complete return to ‘normal’ overnight, but some sectors may be able to return more quickly than others.”
Cook continued: “Travel and tourism has been one of the hardest hit sectors and while we expect a relaxation on travel soon, businesses focused on travel that involves public transport – including aviation – will continue to suffer.
“I fully expect to see news items of tailbacks on the roads in Cornwall as Brits plump for a ‘safer’ staycation in 2020.”
“We believe that the recovery of the UK economy will look like a ‘tick’ akin to the Nike swoosh symbol; a sharp downturn followed by a slow recovery as demand comes back and supply chain disruption normalises.”
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