Strengthening Pound exchange rates against the Euro and the US Dollar helped the currency to soar during trading on Tuesday. This was despite the fact that a lack of Brexit talk progress and concerns over unemployment loom over the currency. Even news that employment in the UK’s retail sector fell at its quickest rate for more than ten years could not stop the bullish support that the Pound received. This saw the currency close the day at 1.111 against the Euro and 1.3148 against the US Dollar according to the Foreign Exchange market.
The Euro picked up on Tuesday after the German GDP performed better than expected and economic sentiment had improved. This resulted in the German GDP contraction being revised lower during second quarter. Despite this, the Euro did struggle against the Pound as the exchange rate did move higher. Still weighing heavy on the single currency is the fact that coronavirus cases are still rising across the Eurozone.
Improved market sentiment saw the US Dollar take a defensive stance yesterday after trade tensions between the US and China eased slightly while hope of a vaccine for coronavirus also helped the Dollar.