The Pound was given a boost yesterday as manufacturing data came out better than expected at 47.8, even though this suggested that activity in the manufacturing industry dropped to its lowest levels in 3 months.
Half of all UK companies have had to furlough staff due to the coronavirus, with the number of companies taking up the state-backed wage scheme exceeding expectations.
The Euro remains under pressure with a record number of virus-related deaths being announced by Spain and France yesterday and with Italy and Germany extending their lockdowns until after Easter. In addition, the European Commission is now attempting to find a compromise amongst EU members with regards to sharing debt but the political discord has so far weighed heavily on the Euro. This morning, Spanish unemployment change figures came out at 302.3K compared to 27.7K which was forecasted which has not helped the Euro’s cause.
The focus for the Dollar today will be US unemployment claims data, and it is expected to show that over 3.5m people filed for benefits last week. This is likely to cause some short-term volatility at 1:30pm, along with US factory orders at 3pm. The Federal Reserve has temporarily lowered the capital requirements of large banks in order to ultimately help businesses and homeowners.