Euro (EUR) Rises as Hopes Grow for EU Covid-19 Relief Fund

Published: 20 Jul at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Japan,

Pound (GBP)

The Pound (GBP) held steady today despite growing fears for Britian’s retail sector after the retail giant Marks & Spencer announced that it would be slashing jobs due to the Covid-19 crisis. As a result, GBP investors have become increasingly jittery as the economy struggles.

Meanwhile, a study by the accountants Deloitte revealed that 65% of finance directors believed the threat of the coronavirus pandemic and Brexit could severely limit the British economy.

GBP struggles as the UK’s economic outlook continues to dim, with forecasts throwing doubt on the likelihood of a V-shaped recovery this year.

Euro (EUR)

The Euro (EUR) performed well today with single currency investors hopeful that the ongoing EU Summit would produce a cross-leader consensus on the European recovery fund.
Consequently, EUR traders a re becoming hopeful that the Eurozone’s economy could be fast-tracked to recovery.

Valentin Marinov, a strategist at Credit Agricole SA, said:

‘A deal on the EU recovery fund should foster fiscal solidarity in Europe and create a massive new pool of high-quality, euro-denominated bonds.’

US Dollar (USD)

The US Dollar (USD) has continued to suffer despite better-than-expected US consumer confidence last week. However, many USD investors are remaining cautious as fears grow over America’s increasing number of Covid-19 cases.

Jamie Dimon, CEO of JPMorgan Chase, was also gloomy about the US economy’s ability to recover, saying:

‘[We’re] going to have a much murkier economic environment going forward than you had in May and June, and you have to be prepared for that.’

Canadian Dollar (CAD)

The Canadian Dollar (CAD) has suffered on rising fears that oil prices could once again dip on the possibility of a second wave of Covid-19 hindering the global economy.

As a result, investors have begun to steer clear of the Canadian Dollar as they continue to eye global economic developments and the number of coronavirus cases worldwide.

Australian Dollar (AUD)

The Australian Dollar (AUD) also suffered today on growing concern over a deeper global recession than previously predicted. Consequently, this has held back risk-appetite for the ‘Aussie’.

Meanwhile Japan – the world’s third largest economy – has shown signs of struggling. Being a bad omen for the global economy, this has restricted demand for risky assets.

New Zealand Dollar (NZD)

The New Zealand Dollar (NZD) has also suffered from a sell-off of risky assets as concerns continue to grow over a possible second wave of the coronavirus.

As of Monday, 20th July 2020, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.106, GBP USD exchange rate was 1.2659, GBP AUD exchange rate was 1.804, GBP NZD exchange rate was 1.9252, GBP CAD exchange rate was 1.713, and GBP JPY exchange rate was 135.7805.

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