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Currencies plummet despite Eurozone reaches peak

20 May 2020

The Pound to Euro exchange rate dropped after the publication of the UK CPI and Retail data from April. The pair rate dropped by -0.3% as well as the UK inflation, which fell by -0.8% in April amid the outbreak. It is currently trading at €1.11.

Additionally, the Office for National Statistics (ONS) pointed out that costs for clothing and second-hand cars had dropped, influencing other prices. This was also affected by the lockdown and most shops being closed.

KPMG UK’s head of retail, Paul Martin explained, “Shifting consumer habits combined with the global pandemic have created a perfect storm for the sector, but this is a resilient industry.”

Furthermore, the Euro is having a strong performance against the British Pound, despite France, Germany and Italy being close to a recession. 

Coronavirus cases in the Eurozone’s strongest economies are peaking, giving traders hope.

The Eurozone’s CPI for April came short of the forecast at 0.7%. 

Moreover, the Pound to Swedish Krona (GBP/SEK) exchange rate also declined to 11.74kr.

The Swedish Krona (SEK) saw gains following hopes for the European economy to be reopened, adding the chances for foreign trade.