RationalFX : The pound finished strongly last week as investors grew more confident that the US Administration and Federal Reserve stimulus would be enough to absorb some of the impact of the coronavirus pandemic……..
Since the US government announced the $2trillion stimulus package and the Federal Reserve injected more dollars into the market, investor flow has retreated from safe havens amid a reversal in G10 performances. These liquidity measures have led to a broad depreciation in the dollar, with the pound rising to two week highs.
Despite this, a good deal of nervousness still remains in the market as the cost of financial derivatives aimed at protecting against price swings in the currency remain relatively high. Despite these market calming measures, money managers still remain nervous about the impact of the coronavirus.
13.00 – EUR – German Harmonized Index of Consumer Prices (YoY) (Mar); expected to fall to 1.4% from previous 1.7%.
Source : ETFWorld.co.uk