RationalFX : Sterling recovered against both the EUR and USD yesterday during a choppy trading session, following an increase in investor risk appetite for the GBP…….
The day prior, the GBP had been on the back foot as news filtered through that Boris Johnson had been moved into intensive care following a worsening of his corona virus symptoms. Fears were alleviated yesterday as an upbeat Rishi Sunak confirmed that the Prime Ministers condition was improving. Sterling rallied off the back of the news as investors view Johnson as a strong enough leader to make the right decisions at the right time and to help guide the U.K. through the corona virus crisis.
In addition to this, comments by Chief Scientific Advisor, Sir Patrick Vallance that the U.K. corona virus numbers could soon steady and that the U.K. was on the brink of “flattening the curve” also helped bid sterling higher.
The EUR moved lower yesterday as the bloc failed to reach a unified agreement on its financial rescue package for the second time. Both Italy and Spain have accused Germany and Netherlands of not doing enough, whilst Spanish Prime Minister, Pedro Sanchez warned that failure to agree a rescue package to help member states could see the bloc “fall apart”. The lack of decisive action from the EU has weighed on the Euro in recent weeks as investors fear that the inability to agree a rescue package will likely prolong the economic impact of the corona virus on member states.
19:00- USD- FOMC Minutes
Source : ETFWorld.co.uk