On Monday the Pound nudged higher following signs that coronavirus infections were beginning to level off. However, things improved for the currency after the release of the latest PMI figures following the higher revision of the finalised manufacturing PMI for January.
The vaccine rollout continues to bolster hope and support the Pound looking forward through the week. At the end of trading, the Foreign Exchange Market closed with the Pound at 1.1333 against the Euro and 1.3677 against the US Dollar.
It was a slow start for the Euro yesterday following poor German retail sales figures. Sales had hit a record low after tighter lockdown restrictions we implemented, leaving investors concerned that this is a trend likely to continue for some time yet. The latest Eurozone GDP figures are the main focus of today, with a slump expected during the final quarter of 2020.
An easing in market sentiment gave the US Dollar some momentum on Monday, with investors favouring the Greenback. Market sentiment came as a result of the potential scaling down of the US stimulus package as well as the concerns around the increased retail trade on the stock market. It’s highly likely that the US Dollar will follow the same pattern during trading today.