The was a slight dip in the Pound to US Dollar rate on Wednesday, with the rate dropping to 1.3354 according to the Foreign Exchange Market. Concerns were made by the Bank of England which indicated that the coronavirus outbreak has caused significant problems for the economy. This caused the currency to lose ground on the US Dollar while Brexit concerns saw the GBP/EUR exchange rate remain narrow bound. Through trading today, investors will have one eye on the UK private sector figures although any hope might be squashed by the growing concerns around unemployment.
There was not much in the way of good news for the Euro as the single currency continues to suffer from the impact of coronavirus as well as a drop in sales figures in Germany. However, this did cause the Euro to Dollar rate to drop although the single currency held firm against the Pound.
Through the session yesterday, the US Dollar did move slightly higher helping to claw back some of its losses. Despite a weak ADP employment report, investors were still more than willing to put their faith in the safe-haven currency, while today the better-than-expected services index could help the US Dollar to improve its recovery.