The Pound vs the Euro exchange rate has dropped from its three-week high hit overnight following the release of the latest PMI Services data which was released this morning. The UK services sector fell more than expected after the final report. The figures were revised down to 34.5 in March compared to the expectation of 34.8.
In terms of the measurement anything below 50 represents contraction in the sector and although it is massively clear that the data was going to be low this has caused the Pound Euro rate to fall this morning as it was revised lower than expected.
Indeed, this figure was the lowest we have seen on record when records began in 1996 highlighting the impact of the Coronavirus on the economy.
According to Tim Moore, Economics Director at IHS Markit ‘the severe impact on service sector activity in March was by no means limited to consumer-facing businesses or those directly hit by international travel restrictions.’
Europe Struggling With Increased Coronavirus Deaths
Europe now has 4 of the 6 countries with the most cases of Coronavirus cases with Spain reaching over 1,000 deaths on Thursday alone. Europe now has recorded over half the deaths globally at the moment and this appears to show little signs of slowing down at the moment.
Later on today the focus will turn to the US jobs market when they release US Non-Farm payroll data this afternoon. Clearly this will be much lower than previous months owing to the ongoing situation but it will be interesting to see what the figures are as this could cause a huge amount of movement on global exchange rates.
Often when we see Dollar strength we see Euro weakness and vice versa so we could see a lot of volatility to end this week’s trading session.
As we move into April then economic data releases will become more and more important in terms of their influence over GBPEUR exchange rates so make sure you’re well up to date with what is happening at the moment.
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