During trading on Friday, the Pound experienced a rapid sell-off following the latest PMI figures which showed that the economy had contracted more than expected. Along with this, the latest retail sales figures were also lower than expected, proving that 2020 really had been a tough year. The latest job figures to be released this week could weigh heavily on the currency as the current lockdown continues to roll on. However, as trading ended on Friday the Pound finished at 1.1239 against the Euro and 1.3682 against the US Dollar.
Euro exchange rates nudged higher on Friday following the latest PMI figures which could indicate that the economic contraction during Q1 of 2021 could be better than expected. There is German data due this week that investors will have an eye on, including the IFO business climate index which is released today.
A downturn in market sentiment caused investors to turn to the US Dollar, initially strengthening it on Friday. Despite this, it lost some ground after the release of Joe Biden’s economic plans which helped to ease any risk concerns. The latest US GDP figures will be pivotal this week, as an improved reading could cause the US Dollar to suffer.