Return to daily updates Tuesday May 12th 2020

Pound steady this morning

Headlines

  • Pound steady this morning
  • France showing 27% decrease in economy activity
  • USD firm, safe haven concerns

GBP

  • The pound was steady this morning after a poor showing yesterday falling slightly versus the dollar and euro. Markets are waiting to see what further announcements are made regarding the furlough scheme and how the UK plans to re-energise the economy. Announcements are expected to be made at 12.30 BST on this, as well as details on how the government will set out the policies to create a safe workplace. Versus the dollar, the pound edged up on Tuesday morning, having strengthened slightly overnight, but still down around 2% this month. It was last at $1.2343, up less than 0.1% since New York’s close.

EUR

  • Bank of France has said that economy activity was reduced by 27% in April compared to 32% in the second half of March, showing the staggering drop caused by the coronavirus pandemic. With no major data today, risk will be the key factor driving market moves, with EURUSD sitting 1.0820 right now.

USD

  • The dollar remained firm on Tuesday as talks of a second wave of coronavirus sent the markets running for cover into the safe haven currencies. That said, a positive boost to the dollar was also given as the U.S Fed downplayed the likelihood of negative interest rates. The euro dipped below $1.08 for the first time in nearly a week, before recovering to $1.0802.

Amir Mehrad
Market update by Amir Mehrad
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