eur-bank-notes-magnifying-glass - EUR

The British pound is lower against the euro on Friday.

The euro gained amid hopes for more German fiscal stimulus, although gains were capped by a lack of a coordinated fiscal response across the block, specifically coronabonds.

The pound tuned lower as Prime Minister Boris Johnson said he would remain in self-isolation while running the country.

It was reported the Queen of England has recorded a video message to address the nation that will be released on Sunday.

Pound versus Euro was lower by 73 pips (-0.64%) to 1.1340 with a daily range of 1.1332 to 1.1440 as of 4pm GMT.

GBP/EUR fell 100 pips from its high of the day to its lows into the afternoon, dropping through the 1.14 level in the process. Week-to-date gains in the exchange rate remained a healthy 1.42%, marking a second weekly gain following a five-week stretch of losses.

The Pound: At the end of a big two-week recovery, some profit-taking might start to creep in

Seven weeks ago the pound was valued at 1.20 euros, two weeks ago it was worth just 1.05. The pound has regained around half the losses it made through March, typically an occurrence that gives pause to a directional move in any exchange rate.

The pound fell amid a more cautious market mood as major oil producers jostled for position before a newly arranged ‘virtual’ OPEC meeting to be held on Monday.

Euro

Reports suggested Germany is looking to match the kind of program that is beginning in the United states, namely a 300 billion loan guarantee program for Small-and-medium businesses. The UK has introduced a similar such program, but it is still get fully up and running, though applications have been in the 10s of thousands.

The higher spending in Germany was offset by other reports that the country was set to reject the idea of coronabonds at the Euro area minister meeting scheduled for next week. The countries most in need of Germany’s backing for the extra funds were clearly hoping that the coronavirus would provide the impetus to change Germany’s long-standing rejection of issuing shares Eurozone debt.


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