The Pound reached a new three-week high against the Euro on Monday, eventually reaching 1.1008 thanks to new hope around a Brexit trade deal. With talks getting to the final stage, there is fresh hope that a deal could be done by the end of this week. There was also an interesting announcement from the Bank of England, with speculation that negative rates could be implemented being downplayed. The pound also made gains against the US Dollar, finishing off the day at 1.2846 according to the Foreign Exchange Market.
There was still a lot of concern surrounding the Euro and the economic recovery following a warning from the European Central Bank suggesting that the future is looking bleak amidst rising coronavirus cases. It was announced that the economic recovery so far is at risk of collapsing if more support is not provided. Further pressure could be mounted on the single currency today depending on the German consumer price index figures.
Investors decided to take profit yesterday, causing the USD Dollar to slow down as market risk appetite improved. With congress in deadlock over the new coronavirus relief package, it meant that the US Dollar became even less appealing to investors during trading yesterday.