[vc_row][vc_column][vc_column_text]News that PM Boris Johnson had been moved to intensive care and a surprise contraction in February’s monthly UK gross domestic product reading put the pound under pressure last week, but Sterling has since recovered ground.

Meanwhile, the euro has derived support from Eurozone finance officials reaching an agreement on a major 540 billion euro package of support measures.

USD didn’t hold up so well however, with rising risk appetite and another jump in the US jobless rate reducing demand for the US dollar. Another 6.6 million Americans signed up for unemployment benefits last week.

As the Reserve Bank of Australia (RBA) proved unwilling to cut interest rates further this helped to keep a floor under the risk-sensitive Australian dollar.

Euro recovers ground as Eurozone finance ministers reach support agreement

Disagreement among Eurozone nations over the suggestion of shared debt dragged on the euro over the course of the last week, but news that an agreement had finally been reached helped EUR bounce back.

Dutch politicians proved resistant to the idea of so-called ‘coronabonds’ last week, casting fresh doubt over the future of the currency union, with Italy looking increasingly at odds with its neighbours.

However, after the Eurogroup reached a compromise deal worth 540 billion euros late on Thursday this encouraged EUR exchange rates to return to a stronger footing.

The mood towards the single currency also improved thanks to a surprise surge in Germany’s export volumes in February, suggesting a greater degree of resilience within the Eurozone’s powerhouse economy.

March’s finalised German and Eurozone consumer price index data may do little to lift EUR exchange rates in the days ahead, though.

Even if inflationary pressure falls further away from the European Central Bank’s (ECB) 2% target this is unlikely to spur any imminent action from the central bank.

Any lingering signs of political tensions within the currency union could also see the euro stumble as the impact of the Covid-19 crisis continues to unfold.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]To request an instant quotation on a currency quotation please click here

* Information courtesy of Currencies Direct, Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written by Currencies Direct.[/vc_column_text][/vc_column][/vc_row]