Pound Starts the Week on the Front Foot vs the Euro

GBP AUD Moves Higher with a UK GDP Boost 

The pound has begun the week higher vs the euro as Prime Minister Boris Johnson returns from his recent absence to Downing Street to make a statement about the current situation. Depending on his comments this could have an influence on GBPEUR exchange rates.

Over the weekend it appeared as though road traffic was up as more people in the UK enjoying the warm weather. The British people appear to be rather weary with the current status of the lockdown and are looking for clues as to when things may start to change in terms of the current situation.

EU Countries Look to Relax Lockdown Restrictions

A number of different countries across Europe have announced measures to ease lockdown restrictions including Germany which has announced that the wearing of masks is to become mandatory on all public transport. In Switzerland schools will recommence on 11th May and meanwhile Malta has announced no new cases of the virus which is the first time in six weeks for the nation.

The current UK lockdown remains in place until at least 7th May whereby it will be reviewed once again by government. Boris Johnson has suggested he will begin talks with the opposition parties in order to come together. He also confirmed that he doesn’t want to have a second peak but he also claimed ‘we are now beginning to turn the tide.’

The general tone was rather upbeat but he also said ‘this is the moment of maximum risk.’ Johnson went on to say that he wants the economy to start moving but will look at various industries one by one.
As we come towards the end of the month the economic data is few and far between so the focus is likely to remain on further political commentary as to how the lockdown will look in the near future.

Clearly, a number of the European countries are ahead of the UK in terms of planning but a lot of these have had less cases than the UK and therefore have adopted a different approach.

Bank of England Members Indicate an Economic Contraction Bigger Than ‘Anything We Have Seen in the Past Century’

In the meantime Bank of England member Jan Vlieghe said at the end of last week ‘Based on the early indicators, and based on the experience in other countries that were hit somewhat earlier in the UK, it seems that we are experiencing an economic contraction that is faster and deeper than anything we have seen in the past century, or possibly several centuries.’

Clearly this is a major concern but whilst almost every nation worldwide has been affected by the pandemic almost everywhere seems to be in the same boat so the impact on Sterling Euro exchange rates has not occurred.

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