Sterling had a relatively quiet time of it yesterday with little deviation in value, as Prime Minister Boris Johnson remains in intensive care though, reportedly, in a stable condition. There was little fundamental data output and today is also light on the economic calendar. Investors appear to be biding time as they await further developments and this was demonstrated in a return to safe-haven assets.
Today looks likely to be more of the same, though markets will continue to react to any significant news.
GBPUSD opened at 1.2332 and was little changed, closing at 1.2326
GBPEUR opened at 1.1356 and lost marginal ground, closing at 1.1325
The US dollar has firmed this morning as investors returned to safe-havens, with hopes that the coronavirus crisis in Europe and New York was slowing appearing to have dissipated somewhat. Yesterday saw a weaker day for the greenback, although it was largely unmoved versus the pound.
This evening sees the release of the last FOMC minutes and these will be key for markets in gauging reaction to the economic fallout from the crisis in the US.
In the eurozone, EU finance ministers failed to agree on further support for their coronavirus-hit economies, causing further market concern and sending shorter-dated Italian yields higher. This resulted in the single currency losing up to 0.4% in value against the dollar throughout the day. On a positive note, year-on-year retail sales surprised on the upside, though this did little to help the currency in the current climate.
EURUSD opened at 1.0859 and closed at 1.0892
