The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
While the unemployment rate still appears on course to rise to levels not seen since the financial crisis USD exchange rates benefitted from the wider sense of market risk aversion.
With safe-haven demand still elevated the US dollar was able to largely shrug off the impact of the weak jobs data, in spite of its negative implications for the economy as a whole.
A sharp decline from March’s leading index suggests that the US economy could continue to shed momentum for some time to come, paving the way for weaker gross domestic product readings.
March’s durable goods orders data looks set to show a major deterioration on the month, with investors anticipating a slump of -11.8%.
This could see the US dollar fall out of favour with investors as the odds of a deeper US recession continue to mount, in spite of the White House’s hopes of reopening the economy sooner rather than later.
Even so, as long as a sense of anxiety continues to plague markets this should limit the potential for US dollar losses thanks to the relative weakness of its rivals.
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)