The British pound is flat against the euro on Monday.
The second day of trading in May has brought with it a second day of losses in global stock markets and riskier currencies like the pound have been out of favour.
But disappointment at France extending its lockdown for another two months and confirmation of the weakest Eurozone manufacturing data on record have weighed on the euro.
GBP/EUR was lower by 8 pips (-0.072%) to 1.1375 as of 3pm GMT.
With just one fleeting dip down to 1.135, the currency pair spent most of the day just below the flat line. On Friday the exchange rate fell -0.21% and weekly losses totalled -0.36%.
GBP: Draft document recommends staggered work hours
The British pound has been weighed down of late by the uncertainty around the easing of the UK lockdown. After calls for greater clarity on its lockdown exit plans, the UK government released the details of its Sage group of experts, who have been advising on the second phase.
A draft leaked document on Monday showed some ideas from the business department for companies included staggered working hours and protective screens in offices. The two metre rule will stay in place in workspaces and bosses might be asked to use tape on the floor to separate employees. The draft was shared privately but the official roadmap for Britain’s end to stay-home orders will be released Thursday.
EUR: France extends state of emergency for two months
There was some disappointment at how slowly France, the Eurozone’s second largest economy will exit its state of emergency. Minister of Health Olivier Veran said France will extend its health emergency for another two months until July 24. As part of the order, people travelling to France will be forced into compulsory two-week quarantine.
Final manufacturing data for April came in slightly short of preliminary estimates, confirming the worst data ever recorded since PMIs first began. Nonetheless, there is possibly some light at the end of the tunnel. Chris Williamson from Markit who compiled the data said “April will have hopefully represented the eye of the storm in terms of the virus impact on the economy.”
