With Cabinet ministers split on how to ease current lockdown restrictions, the Pound has seen some weakness in the last 24 hours. The Bank of England’s Deputy Governor Broadbent believes that predictions suggesting that the UK economy could see a 35% contraction are not unrealistic. This morning, the UK claimant count change showed an increase of 12,100 compared to the predicted figure of 170,000 for the month of March but this better than expected data only gave the Pound some slight support.
There is little news from yesterday’s post-Brexit trade negotiations, with EU chief negotiator Barnier due to hold a press conference on Friday which will give further details and will likely cause fresh volatility.
Both Eurozone and German ZEW economic sentiment figures are due at 10am this morning, which will be the main focus for the Euro today. Spain’s economy minister Calvino believes that all countries within the eurozone should have the same level of support, even if some are more cash-rich than others. Italian PM Conte has said that he will aim to gradually reopen the country from 4th May. With EU finance ministers still negotiating amongst themselves over potentially sharing debt issued during the pandemic, the Euro remains weak against the Dollar but has seen some slight gains against a weaker Pound.
With oil prices plummeting, there has been a flood to safety by investors which has led to the Dollar strengthening due to its safe-haven status. President Trump has temporarily suspended immigration into the US in order to help avoid the spread of the coronavirus within the country. Congress could sign off on a loan programme worth $350bn by Wednesday that would help small businesses cope with the economic impacts of the virus.