Downbeat Market Sentiment Forces Euro to US Dollar Rate to Retreat

The Pound started Monday on a strong foot as further encouragement was taken from the reopening of more of the economy.

There was a slight recovery in the Pound to Euro exchange rate although it finished the day at 1.1502 while it finished at 1.3897 against the US Dollar according to the Foreign Exchange Market. Despite this, the gains were lost as market sentiment took a downturn.

The Euro saw rates fall back on Monday, with the rate against the US Dollar retreating. There was more pressure placed on the single currency as a result of the strength of the US Dollar while there was disappointing data from Germany in relation to the IFO index. It came in under expectations while a lack of data releases today will mean that coronavirus statistics are going to be the main focus.

The US Dollar nudged higher yesterday as demand for the safe-haven currency increased as a result of downbeat market sentiment. This was down to the latest US durable goods figures which came in weaker than expected. 

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