Brexit and Coronavirus Continue To Mount Pressure On The GBP/EUR Rate

The GBP to Euro rate fell again during trading on Tuesday, dropping to 1.0948 following more uncertainty around Brexit as well as the ever-changing coronavirus situation. Along with this, the Bank of England also heaped pressure on the currency after releasing warnings that unemployment could also creep higher than the forecasted figure of 7.5% by the end of the year. The GBP to US Dollar rate also saw little in the way of movement, edging marginally higher to 1.295, proving that it was a challenging day for the Pound on the Foreign Exchange Market.

The Euro edged higher on Tuesday after market sentiment improved, giving more support to the single currency. Adding to this was news that the producer price index in Germany also saw improvements, surpassing expectations and seeing a 0.4% increase during September. Once again, these gains are left perilously close to falling as Coronavirus continues to wreak havoc across Europe.

There was significant selling pressure on the US Dollar as hope of an additional US stimulus package dented the appeal of the currency. Even though a deadline was put in place, talks are still ongoing, increasing hopes that a deal can be agreed upon.

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