The pound was lower on Monday after worries about the UK EUR trade agreement resurfaced as both sides laid out conflicting views on how to proceed with the deal. These contrasting comments saw a move to the key physiological level of 1.30 versus the dollar. There is a raft of important economic data for the UK this week, which markets will use as a guide towards the health of economy as well as a guide on whether Bank of England could look at current rates.
The euro remains at a three league low versus the USD, with all eyes on the Germany survey due out at 10am GMT. It is expected to show a slump in investor confidence and overall show a negative outlook for Europes largest economy. Sentiment for the single currency has worsened over the past months showing poorer economic data which is reflected in current rates versus the dollar at 1.0828 and the pound at 1.20.
Dollar strength continues in the market as risk remains “off” and market fears over the coronavirus keep the greenback strong. Important US data, namely the Fed minutes tomorrow and manufacturing PMI on Friday could guide the market on where the dollar is heading.
Market update byAmir Mehrad
14 years experience in deliverable foreign exchange, over 7 as CEO of Effective FX
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