On Friday, the 3rd of April 2020, the British currency had erased some of its gains made earlier this week, as British Services and Manufacturing sector PMI (Purchasing Managers’ Index) data had revealed a record slump in business and household activities in March to 36.0 from an earlier 53.0 a month earlier amid a broad-based partial lockdown in major parts of UK, beating an analysts’ estimate of a decline to 37.0.
As a matter of fact, as the British currency’s decline appeared to be exponentiated by an en masse lack of liquidity amid a manic phase of “US Dollar buy” approach from the traders over frets of further deterioration of economic activities in the United Kingdom, which analysts said could still have been in an early stage of the pandemic, while cases in Italy and Spain appeared to have stopped surging, the British currency wrapped up the day 1.5 per cent lower to $1.2205 against its American counterpart.
In tandem, against the bloc’s single currency, the Sterling dived 0.8 per cent to 88.32 pence. Meanwhile, adding a silver lining to the Briitsh currency and citing that the Sterling might cling on to a resistance level at 0.85 pence against the bloc’s common currency, but it would take a long time to reach there, a macro strategist at Société Générale, Kit Juckes said on Friday (April 3rd), “It’s clear that it takes less selling quantity to move sterling ...
that will remain an issue. fair value for euro/sterling is 85 (pence) but it’ll take a lot of time to go there. Sterling is meant to be perceived as more cyclical sensitive than the dollar, Japanese yen or Swiss franc. ” Last month, sterling fell to a 35-year low figure of $1.14 against the American currency.