Return to daily updates Monday May 11th 2020

UK PM Johnson unveils plan to ease lockdown

Headlines

  • UK PM Johnson unveils plan to ease lockdown
  • Euro lower versus the dollar
  • US continue to reopen states 

GBP

  • Sterling was lower at the end of the UK working week, hitting a two week low versus the dollar. Despite the Bank of England policy statement offering the markets some hope for the Pound, uncertainty surrounding easing of the virus lockdown and Brexit crept back into investors minds. As broadly expected, the BoE held rates steady and announced no further stimulus, saying it was ready to take further action to counter the coronavirus pandemic’s fallout. UK PM Boris Johnson unveiled his plan to relax measures yesterday evening, which was met with some confusion from the public and market participants and as such, investors are focussing on Parliament today where further details will be released. 

EUR

  • The euro suffered its biggest lost in a month versus the dollar on Friday. Once again, markets focused on the ECB asset purchase programme concerns more so that dollar strength and as a result EURUSD fell to 1.0765, however has since rallied back to 1.0833 where it currently sits. 

USD

  • The dollar was steady on Monday as the US continued to reopen their states, raising hopes that there could well be a quicker global recovery that first expected. On Friday, the non-farm payroll data showed that the US has lost 20.5 million jobs in April, the biggest fall since the Great Depression, however markets are starting to look past such data and bet on future growth. Wall Street indexes rallied, defying the gloom from one of the worst U.S. jobs reports in decades.

Amir Mehrad
Market update by Amir Mehrad
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