The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
While more Eurozone nations went into a state of lockdown in response to the pandemic ECB policymakers affirmed their commitment to protecting the euro.
However, as the Eurozone trade surplus narrowed significantly from 23.1 billion to just 1.3 billion in January worries over the health of the economic outlook lingered.
With the global trade slowdown looking set to push the Eurozone economy into a state of sharp slowdown the potential for euro gains still proved limited.
March’s set of Eurozone manufacturing and services PMIs could see EUR exchange rates shedding fresh ground this week.
After the muted performance seen in February the German manufacturing sector looks set to sink deeper still into a state of contraction, fuelling anxiety over the health of the Eurozone’s powerhouse economy.
Even so, if Eurozone governments announce further fiscal stimulus aimed at bolstering economic activity this could help to cushion any euro downside in the near term.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)