Thursday was not a good day for the Pound as it suffered following the latest news from the Bank of England. The bank announced that interest rates would remain at 0.1% and that it had planned to add £100bn to its quantitative easing programme. This saw the currency drop to 1.1088 against the Euro, the lowest rate for many weeks according to the foreign exchange market and 1.2428 against the US Dollar. Despite this, there is hope that the Pound can recover slightly today as UK retail sales look to have increased during May, hinting at economic recovery.
There was a lack of Eurozone data on Thursday and this left the Euro slightly motionless during trading. However, this did open the single currency up to losses but the virtual EU summit might provide a glimmer of hope when it comes to tightening up the economy following the impact of coronavirus.
It was a different story for the US Dollar through Thursday, as it rallied during the trading session after concerns of a second wave of coronavirus infections. However, there were promising signs that the economy is in recovery mode after the Philadelphia manufacturing index reported improvements in June.