06.05.2020 Eur/GBP Daily Analysis

06.05.2020 Eur/GBP Daily Analysis

Eur/GBP is trading low today at 0.89709, it went down with 0.0003 mainly because the Federal Court of Justice gave the European Central Bank three months to justify the purchases or risk losing the Bundesbank as a participant in the program to fight the economic impact of the coronavirus after a German court ruled overnight that the European Central Bank justify purchases under its bond-buying program. St. Louis Federal Reserve President James Bullard pointed out that this will be the second time they are in a major crisis where the ECB  has been put under heavy pressure, he is of the view that this is a stress test for the euro and the European project to be able to react to this crisis in an effective way. This however has made the Euro become weaker against the pound hence the reason why Eur/Gbp pair is trading low today. On the contrary, the British pound seems to be getting stronger regardless of the increasing prospects for an extended lockdown in the UK and renewed concerns about hard-Brexit. Their economic data front on UK Services PMI was revised higher to 13.4 for April as compared to 12.3 estimated previously and extended some support to the sterling.