The Pound has recovered some of its recent losses against the Euro and the Dollar. Members of the 1922 committee have voiced their concerns about the impact of the lockdown on the UK economy, with some members calling for the first stage of lifting the lockdown to occur after the first week of May.
This morning, UK flash manufacturing came out worse than expected at 32.9 compared to 42.0, and services PMI figures dropped dramatically to 12.3. CBI industrial orders data is also due at 11am, which will be closely watched by the market.
Yesterday, Eurozone consumer confidence came out at -23 compared to -20 that was forecast which put the Euro under pressure. Today, EU members will meet to discuss potentially introducing further stimulus in the area with comments from finance ministers likely to be scrutinized by the market. EU trade commissioner Hogan has suggested that although the EU would need to review their trade policy once the pandemic is over, they should ‘not aim for self-sufficiency’. Eurozone manufacturing & services data have disappointed the market this morning.
With oil prices experiencing a slight recovery, the Dollar has weakened in the last 24 hours as it lost some of its safe-haven sentiment for the time being. US unemployment claims will be released at 1:30pm and although another 4.3m workers are expected to have filed for unemployment benefits, the data should suggest that this has already peaked. Flash manufacturing and services PMI data is due later this afternoon which could cause some short term volatility for the greenback.