Thu, March 28, 2024

Sterling remained strong despite British economy’s problems

Sterling remained strong despite the British economy's problems

The British pound was steady on Friday. The country was in a tight pandemic lockdown for a month. As official data showed on Friday that caused a sharp decline. However, Sterling managed to stay strong thus far.

According to reports, Britain’s economy shrank by a record 20.4% from March to April. Investors hope that this number is the bottom of the crash before a long and slow rebound. Despite the optimistic outlook, the Sterling traded flat at $1.2606. It fell by 0.1% against the Euro at 89.79 pence.

Meanwhile, the Euro edged up slightly against the U.S. dollar near the three-month high it hit earlier in the week. The currency increased by 0.1% to $1.1315. It hasn’t traded far from $1.1422, the highest point it reached on Wednesday. Investors stopped from cashing in the latest profits, thus giving the Euro an opportunity to gain.

      • Interested in trading the British pound? Read WiBestBroker’s comprehensive review on FXChoice.

What about the risk-off currencies?

The risk-off currencies, such as the Australian or New Zealand dollars, rebounded on Friday, trading higher against the safe-haven, greenback. Before that, they plummeted down during the Asian trading session. But the currencies managed to find footing soon.

The Aussie soared by 0.4% to $0.6881 in the Asian session, after dropping to a 10-day low of $0.6799.

The Nordic currencies rose as well. And the oil-sensitive Canadian dollar traded up by 0.3% at $1.3585 at last. However, the Norwegian crown was the biggest mover, surging by 0.6% to $9.5665 against the U.S. currency.

While economic data continues to point that the economic wounds due to the pandemic are behind us, and the authorities worldwide keep easing their lockdown measures, markets would treat the retreat as a corrective phase of a more extensive recovery – stated Charalambos Pissouros, the senior market analyst at JFD Group.

He also noted that analysts still see decent chances for safe havens to come under renewed selling interest or for equities and other risk-linked assets to recover again.

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in