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As Friday drew to a close, the Pound ended the week on the back foot after it reacted to comments from the Bank of England regarding the economic recovery after the Coronavirus lockdown. Hopes of a V-shape recovery were stopped in their tracks as the Bank of England made it clear that the recovery has not been as expected. As a result, according to the Foreign Exchange Market, the currency finished the week at 1.0996 against the Euro and 1.2566 against the US Dollar.

Things improved again for the Euro as it remained unaffected by some of the negativity surrounding the EU summit whereby the coronavirus recovery fund would be discussed. An agreement is still yet to be reached and so, talks are now moving into the fourth day. This is likely to impact the Euro as the currency might be impacted by the fact that talks are failing.

A lack of US consumer confidence resulted in the US Dollar failing to gather any momentum at the end of the week. The improvement in sentiment has been pushed down during July and a spike in coronavirus cases is likely to impact the economic outlook and so investors will be monitoring this closely this week.

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