Dismissal of Negative Interest Rates Give the Pound a Boost

The Pound reached its highest point since May against the Euro on Thursday following news that the Bank of England decided to keep interest rates unchanged. The currency was also boosted by news that the Bank of England also expects there to be a strong economic rebound following the successful rollout of the vaccine so far.

As trading came to a close yesterday, the Pound finished the day at 1.1428 against the Euro and 1.3675 against the US Dollar according to the Foreign Exchange Market.

The Euro weakened yesterday after concerns continued around the lack of speed at which the vaccine is being rolled out. This means that lockdowns are likely to continue which will have a longer impact on the economy. Even the losses couldn’t be revived by the news that retail sales were better-than-expected. Increasing by 2%.

The dollar weakened slightly although the vaccine rollout is picking up speed while President Biden continues to press forward with his fiscal stimulus package. There was another drop in jobless claims although unemployment remains high and that continues to be a worry for investors who are banking on a quick recovery for the economy.

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