By Yasin Ebrahim
Investing.com – The pound and the euro are set for another straight weekly decline against the dollar on Friday as analysts warn of further pain despite expectations that the UK and euro area economic output could improve this month.
fell 0.88% to $ 1,2118, a more than seven-week low, while rising 0.12% to $ 1.0817.
The impact of coronavirus is likely to continue to keep a lid on the pound and the euro, even when the U.K. and purchasing managers’ index surveys in the euro area – which is scheduled to be released next week – are likely to recover in May, UniCredit suggested.
“There is still a fear of another wave of Covid-19 infections after new cluster cases were reported in Wuhan, China and after new infections have also occurred in South Korea and Germany,” the bank said.
Earlier this week, the U.K. Reported GDP fell by 2% in the first quarter of the year, its quarterly decline since 2008. Eurozone GDP fell by a record 3.8% in the first quarter.
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