The end of last week saw the Pound take a hit as it reacted to concerns around Brexit whereby little progress had been made. The foreign exchange rate last Friday indicated just how much the currency had weakened as it finished the day at 1.1185 against the Euro and 1.2104 against the US Dollar. These figures highlight just how much of an impact had been made on the Pound when compared to the figures from the previous day.
In contrast to this, the Euro was pushed higher despite the fact that Germany had confirmed that it was in a recession, experiencing its largest contraction seen during a quarter for a decade. However, it was the weakening US Dollar that helped to bolster the Euro. However, the coronavirus lockdown restrictions are still easing and that could see further international payments and investments being made within the Eurozone.
It was a record fall in retail sales that pushed the US Dollar backwards last week and that meant that investors were not keen on taking advantage of the safe-haven currency. However, the ongoing tensions between the US and China are likely to have an impact on the US Dollar, helping it to gain some ground this week.