The Pound pushed higher versus the Euro across the previous week. The Pound versus Euro exchange rate jumped 1.4% to close the week at €1.1345, in its second straight week of gains. The Pound had been on a strong rally versus the common currency, although Friday saw the pair snap an eight-session losing streak, closing the day -0.6% lower.
At the start of the new week, at 06:30 UTC, GBP/EUR is trading -0.3% lower, at €1.1304, as the Pound extends Friday’s losses.
The number of coronavirus cases in the UK continues to rise, with a peak expected in the next 7 -10 days. Meanwhile, Spain recorded a lower level of deaths for the third straight day. Italy, which has seen the most deaths in Europe has reported the lowest level of deaths since 26th March and France is also showing signs of stabilising.
GBP: UK Construction Activity To Contract
The Pound has opened the new week trending lower, as Prime Minister Boris Johnson has been admitted to hospital with persistent coronavirus symptoms. His transfer from Downing Street comes as the number of coronavirus cases reaches 47,000 and the number of deaths closes in on 5000.
On the data front, UK consumer confidence has plunged by the most on record, as the shutting down of the UK economy hammers households’ financial outlook.
Looking ahead, investors will turn their attention to activity in the construction sector. Analysts are expecting activity in the sector to have contracted to 44 on the purchasing managers index in March, down from 52.6 the previous month, as the impact of coronavirus starts to show through. The figure 50 separates expansion from contraction.
Today’s figures will come after PMI data, last week, revealed a record fall in both the county’s manufacturing and service sector in March.
Sentiment & Coronabonds In Focus
Eurozone investor sentiment will be in focus today. Analysts are expecting confidence to plummet to -37.5 in April, well down from the already weak -17.1 in March.
This week, a lot of attention will be on eurozone finance ministers, who will be locked in teleconferences trying to decide whether to advance with “coronabonds”, a new form of EU -wide mutualised debt. Whilst Germany and Netherlands are strongly opposing the idea of a joint eurozone bond, Spain Italy and France are in favour.
