After closing the previous session 0.2% higher at €1.1258, the Pound versus Euro exchange rate is edging lower in early trade on Wednesday.
At 06:30 UTC, GBP/EUR is trading -0.2% at €1.1229, snapping a 6-session winning streak as investors digest the latest coronavirus statistics and look ahead to Italian manufacturing figures.
Coronavirus Death Toll Jumps
The Pound is edging lower as coronavirus and its economic impact remain firmly under the spotlight. Yesterday, the UK experienced its deadliest day with daily deaths increasing by 27% to 381. This was a sharp increase despite moves taken to control the spread of the virus. 25,150 cases have now been diagnosed
Yesterday data revealed that business and consumer confidence in the UK had plunged following the outbreak of coronavirus, even before the lock down measures were in place. Low household morale leads to low consumption, which is bad news for the UK’s economy, which is so dependent on consumers.
Today investors will shift their attention to the manufacturing sector. The manufacturing purchasing managers index is expected to show a downward revision to 47, from 48. The figure 50 separates expansion from contraction. This figure is significantly higher than the service sector PMI which showed that business activity in the UK’s dominant sector plunged in March to just 37.1, the lowest level ever recorded.
Italian Manufacturing PMI Set To Plunge
Moving into the new quarter, coronavirus remains a key focus for euro investors. Italy’s new cases levelled out at a two-week low, whilst Spain said new infections have stabilised even as it reported its biggest death toll yet.
The eurozone economic calendar is rather full today. However, manufacturing PMI’s will be the most closely watched stats because they cover March, and the coronavirus outbreak. German retail sales and Eurozone unemployment cover February and will already be seen as out of date.
In the final revisions for the manufacturing PMI analysts are expecting only a slight revision for the eurozone as a whole, to 44.6, down from 44.8. Investors will be watching Italy’s data closely, which is expected to show that manufacturing activity plummeted to 41, down from 48.7 as Lombardy the manufacturing region of Italy is the worst hit by the pandemic.
