After what has been an extremely unstable few weeks for EURGBP exchange rates, yesterday say a calmer day for the currency pair, with the single currency making small gains against the Pound. Coronavirus news and updates continue to dominate the headlines and have been a considerable driving force behind exchange rate movement. Boris Johnson’s admittance to intensive care has been a shock for many, whilst Spain’s death rate from the virus increased again yesterday after showing signs of slowing over the weekend.
Talks Fail Between European Finance Ministers, Postponed Until Thursday
Last night European finance ministers met to agree on measures to help support the economic bloc in the face of the Coronavirus crisis, but it has emerged this morning that these talks failed, and the meeting has been suspended until tomorrow. Mario Centino, Eurogroup chairman, stated this morning, “After 16 hours of discussions we came close to a deal, but we are not there yet. I suspended the Eurogroup and (we will) continue tomorrow.” The outcome of this meeting could prove crucial to the way that the Eurozone economy emerges from the pandemic and could therefore have a significant impact on the value of the single currency. This morning has seen the Euro weaken against GBP and USD.
UK Property Sales Slump by 70% Since Lockdown
A report released by Zoopla yesterday highlighted the impact that the Coronavirus is having on the UK property market, with the number of UK property sales agreed since the lockdown began falling by 70%. They were quick to highlight however that this was not due to potential sellers taking their property off the market, stating, “There has been no mass withdrawal of homes from the market as agents and consumers adopt a wait-and-see approach. The closure of estate agency branches and general uncertainty has resulted in far fewer sales agreed in the last two weeks, with less new supply coming to the market.”
They did also find that with people having more free time on their hands, the numbers of people viewing properties online had increased, giving hope that the market may quickly pick up once the lockdown and social distancing measures are relaxed. Tomorrow sees a raft of other data sets from the UK, including GDP estimates for March. These numbers are likely to show a large drop due to the impact of the current crisis and could see the Euro make gains against the Pound.
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