Thanks to an improvement in risk sentiment, the Pound Sterling was able to recover some earlier losses during Tuesday trading in London. Several factors helped the shift, including some governments easing of lockdown measures, and the Trump administration contradicting the President's earlier assertion that China would be hit with new tariffs in retaliation for releasing the Coronavirus. Currency strategists still don't expect to see much more than these gains going forward, as there are very few catalysts seen in the weeks ahead and because markets have already priced in the impact of less stringent quarantine rules.
In London trading as of 11:12 am, the GBP/USD was trading higher at $1.2447, a gain of 0.0595% and off the session peak of $1.24848. The EUR/GBP was lower at 0.8719 Pence, down 0.4909%; the pair has ranged from 0.87045 Pence to 0.87698 Pence in this trading session.
UK Outlook Gloomy
The UK's economic data continues to paint a dismal picture. Data showed that new car sales in April fell by nearly 97% last month, a low last seen in February 1946. Moreover, a recent survey indicates that small manufacturers in Britain expect that, over the course of the next three months, output will hit a 30-year low. FX traders will be looking to see if the Bank of England will be able to offer any signs of hope when they meet on Thursday to discuss monetary policy. Analysts don't believe that there will be any imminent policy changes announced this month, however.