09.03.2020 EUR/GBP Analysis
Pound Sterling swooned to a five-month low against the Euro on Monday, March 09 amidst a fresh market panic about the coronavirus outbreak that has prompted
Yayınlanma: 10 Mart 2020 00:23
Güncellenme: 18 Kasım 2024 10:33
09.03.2020 EUR/GBP Analysis
Pound Sterling swooned to a five-month low against the Euro on Monday, March 09 amidst a fresh market panic about the coronavirus outbreak that has prompted significant falls in stocks and oil, but the UK currency is registering advances against the likes of the U.S, Canadian, Australian, and New Zealand Dollars. A sharp slump in demand for UK stocks and other assets could well be behind Sterling's soft start to the week against the Euro which remains a major beneficiary of the market slump. While the GBP/EUR exchange rate is exposed to broader market trends, the UK currency is recording strong advances against 'commodity currencies' such as the Aussie and Canadian Dollars which are particularly exposed to shifts in global sentiment and commodity prices. The Pound is also trading higher against the U.S. Dollar, as the greenback has shown itself to be particularly prone to losses in the current coronavirus-linked market sell-off.
The current coronavirus-inspired meltdown in stock markets has seen global investors turn more bearish which inevitably means inflows of foreign investor capital into the UK could be at risk of drying up. However, the Pound might not be as exposed to shifts in investor sentiment as was the case before the EU referendum.
