The pound dipped against the euro yesterday, following Rishi Sunak’s comments that the UK is likely to already be in a ‘significant recession’. His comments come on the back of a poor showing for GDP figures on Wednesday, which revealed the economy shrank by 2% in the last quarter.
In the Eurozone, the markets are awaiting tomorrow’s GDP data, expected to show a significant drop. Nonetheless, the ECB’s de Guindos argued yesterday that the Eurozone may have already hit ‘rock bottom’ and could be on the path to a slow recovery as lockdown is eased.
The dollar was given a boost by Jerome Powell’s comments that the Federal Reserve will not consider negative interest rates to combat the Covid-19 pandemic. However, he did call for further stimulus measures, saying they would be costly but ‘worth it’.
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