FX Market Report 02/11/20

Following the several announcements to go into lockdown this weekend, the Pound to Euro (GBP/EUR) exchange rate has been fluctuating(1.1102 at time of writing). The lockdowns imposed in France and Germany led to gains but may be rattled by the impact of the UK lockdown.

Due to an increase in coronavirus cases across Europe last week, the Euro was pressured. European Central Bank President Christine Lagarde noted that the Eurozone’s economy is on the decline with “very negative” growth being expected this month.

After Boris Johnson’s announcement on Saturday, Sterling dropped to a new low from the past two and a half weeks, at $1.2863.

The Euro was trading at 1.1627 against the U.S. Dollar and 104.91 against the Japanese yen.

On the other hand, at the start of the week, the U.S. dollar saw gains ahead of the presidential election. Analyst Jordan Rochester said, “Volatility is rising because liquidity for hedges around the election is very thin, everyone’s the same way, there’s no one selling this stuff thinking everything’s great.”

“It’s never clear whether the last-minute swinging polls actually is a true reflection of the change in the race.” In the U.S., Democratic leader Joe Biden is leading the national opinion polls, ahead of Republican leader and President Donald Trump.

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