The Pound has continued to stay weak against both the Euro and Dollar as industrial order expectations were released much worse than expected at -48 compared to -32 that was forecast. Prime Minister Johnson has introduced further restrictions to curb the increasing number of virus cases. Bank of England Governor Bailey struck a cautious tone in his speech yesterday about the state if the economy and has suggested that some industries would benefit from further wage subsidies.
Eurozone consumer confidence figures beat the market’s expectations yesterday, giving the common currency some strength against the Pound. However, the Euro remains under pressure against the Dollar as ECB member Panetta suggested that the central bank should provide more stimulus than needed and also pointed out the recent appreciation of the Euro as something to watch due to its effect on inflation.
The US Richmond manufacturing index came out better than anticipated at 21 instead of 12 which gave the Dollar a boost across the board. The greenback is also benefiting from its safe-haven status as the market remains cautious about the global economic impacts a second-wave might have.