The Pound continued to recover through trading on Wednesday with rates against the Euro and the US Dollar becoming stronger. This saw the currency finish the day at 1.0979 against the Euro and 1.2972 against the US Dollar according to the Foreign Exchange Market. Along with this, exchange rates were bolstered by news that the Internal Markets Bill could be avoided in order to avoid breaking international law. This also helped to ease concerns over the economy after the UK’s consumer price index saw inflation drop to 0.2% during August.
There was not a lot of movement for the Euro yesterday as there was not a lot of data released to push it in either direction. There was an element of caution surrounding the impending announcement from the Federal Reserve about their rate decision. However, the increasing coronavirus cases in Europe also caused the Euro to struggle.
The European session saw the US Dollar lose some ground yesterday following US retail sales figures for August coming in lower than expected. The safe-haven currency attempted to recover lost ground during the afternoon although this was stopped in its tracks after the Federal Reserve indicated that rates will remain held until 2023.