by Jane Ebury
on Wednesday, February 19th, 2020 at 8:25am.
Sterling reached a high for 2020 against the euro as concerns grow over the Eurozone economy, fueled by the ongoing outbreak of coronavirus.
Poor German ZEW economic sentiment survey reflected a growing lack of faith in the Eurozone economy, particularly in Germany with its reliance on trade with China, while the UK enjoyed a commanding boost from positive employment figures and a rise in inflation to 1.8%. This inflation data was closer to the Bank of England’s target of 2.0% and beat the forecast of 1.6%. As a result, investor faith continued to abandon the euro and flock to the pound, which remains unscathed by the impact of the coronavirus on the currency markets.
“Do not let us speak of darker days; let us speak rather of sterner days. These are not dark days: these are great days – the greatest days our country has ever lived. ” Winston Churchill