The Pound exchange rates continued to recover during Tuesday even with the ongoing Brexit concerns still looming over the currency. There was also bad news in the form of the latest job figures although these figures did not affect investors. All of this saw the Pound to US Dollar rate rise to 1.2890, while the Pound to Euro rate rose to 1.0878 according to the Foreign Exchange Market. However, there is every possibility that the currency could face some headwinds today after it became apparent that UK inflation plummeted to the lowest levels seen since 2015.
There was very little support for the Euro on Tuesday after some countries started to introduce more coronavirus restrictions. This managed to offset the latest German Zew surveys which showed a better-than-expected reading. This caused the Euro to weaken against the Pound and US Dollar.
Improved Chinese data and the hope of a coronavirus vaccine caused market sentiment to improve which put the US Dollar on the defensive during trading. US industrial production did not grow as expected during August and this caused further problems for the US Dollar. The Federal Reserve’s latest rate decision is likely to be the main focus through trading today.