GBP - British Pound
Sterling remains on the back foot as we enter Friday. Cable has been steady over the last 48 hours as investors look to today’s busier docket for new direction. Since last week’s mammoth moves cable has sat between 1.23 and 1.25 but today’s news could break either of those levels.
The UK chancellor has announced fresh measures to provide state backed aid packages to medium sized firms with turnovers as high as £500 million. On the other hand, Health Secretary Matt Hancock also suggested the idea of issuing certificates to allow people who have built up immunity to the coronavirus to return to normal life. The death toll in the UK rose by 569 bringing the total to 2,921 and globally cases of infections have broke 1 million.
Focus for the UK now turns to the release of Services PMI at 9.30, a drop in this number has been forecast which in normal times would place selling pressure on the quid. However, these are not normal times and like we have seen with other big misses in the forecasts a lot of this data has been brushed aside.
As mentioned above, a grim milestone was reached Thursday with 1million cases of COVID 19 recorded globally, a fifth of which are in the US. With over 200,000 Americans already confirmed to have contracted the virus and the US woefully ill-prepared to deal with the outbreak there are real fears the US will outstrip Italy’s casualty rate in the weeks ahead. Investors largely ignored a 3,000% jump in jobless claims with 6.65million American filing for unemployment through the last week. The print dwarfed medium estimates and only served to highlight the economic footprint likely to be left behind by the spreading pandemic.
Attention now turns to the all-important non-farm employment change for the states at 1.30pm, alongside this we will get average hourly earnings and the unemployment rate. All are expected to show a worsening employment sector as the US feels the effect of the virus.
EUR/USD has continued to slide and this morning the pair has broken below the 1.08 handle. Leaders in the eurozone are at loggerheads over the economic relief for the crisis. Without an immediate solution to the fast-evolving problem, the euro has room to the downside. The Eurozone has just released its Services PMI’s for Germany, Spain, Italy and France and all have posted a decline pushing the Euro lower.
1.2280 - 1.2480 ▲GBP/EUR:
1.1350 - 1.1500 ▲GBP/AUD:
2.0380 - 2.0580 ▲GBP/NZD:
2.0850 - 2.10 ▲