The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
With the Eurozone manufacturing sector expected to come under greater pressure in the first quarter, thanks to the wider global slowdown, this weakness left EUR exchange rates on the back foot.
The mood towards the euro soured further on Friday thanks to a weaker-than-expected German gross domestic product report.
As the Eurozone’s powerhouse economy failed to deliver any growth in the fourth quarter this added to existing worries over the health of the German outlook, giving investors fresh incentive to sell out of the single currency.
Any deterioration in February’s ZEW economic sentiment surveys could add to the bearish mood, pointing towards a softer quarterly performance.
EUR exchange rates could come under particular pressure if February’s German manufacturing PMI slides even deeper into contraction territory.
Even if the wider Eurozone demonstrates signs of resilience a weak German manufacturing sector looks set to drag on growth, exposing the euro to additional selling pressure.
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)