05/05/2020

Investors rush to the safe haven dollar


GBP

Sterling fell on Monday, driven by a stronger dollar due to worsening US-China relations and the British currency entering one of its worst-performing months.

As the US were critical of China’s handling of the coronavirus outbreak and with the UK adding more pressure on China to answer questions over the information it shared about the outbreak, market sentiment was hurt and investors rushed to the safe haven dollar.

Later this week Boris Johnson is due to announce his plan to lift lockdown restrictions and get the fifth largest economy back up and running without triggering a second wave of infections.

Key announcements 

09:30 – GBP – Final services PMI – Unchanged at 12.3
3:00 – USD – ISM Non-Manufacturing PMI – Forecast at 37.5 from previous 52.5


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