It was a mixed day for the Pound on Tuesday as it lost ground against the Euro, dropping to 1.0953 while it remained steady against the US Dollar at 1.2864 according to the Foreign Exchange Market. Brexit was still very much a sticking point for the currency, as was increasing coronavirus cases, along with news that negative interest rates are still firmly on the table according to the Bank of England. With Brexit and coronavirus causing problems for the recovery of the economy, investors remained edgy throughout the session.
The Euro managed to regain some of its losses with an improved market sentiment helping to limit demand in the US Dollar. This meant that the Euro to US Dollar rate increased by one cent. Despite this, gains were held back by the latest consumer price index in Germany, as they highlighted that the largest European economy had fallen into a period of deflation during September.
The was little in the way of movement for the US Dollar with the presidential debate weighing heavily on its performance. Following the debate, there was a drop in risk appetite causing the Pound to US Dollar rate to dip while the USD/ EUR rate made up some of the losses that were seen yesterday.