At the end of last week, the Pound struggled to gain momentum as the row between the EU and Astrazeneca rumbled on. With pressure being placed on the company, investors had concerns about the impact it could have on the currency.
Despite this, the EU eventually backtracked but this week the Bank of England has its first policy meeting of the year and that’s likely to impact the Pound. However, at the end of trading on Friday, the currency finished the day at 1.1291 against the Euro and 1.3705 against the US Dollar according to the Foreign Exchange Market.
The Euro made some solid gains on Friday following the news of the German GDP release. The economy expanded by 0.1% during Q4, which was higher than expected. This helped to bolster the single currency although this week the Q4 GDP release for the Eurozone will impact its direction.
There was an initial rally for the US Dollar on Friday but news of successful trials in two vaccines improved market sentiment, causing investors to reduce their positions in the Greenback. The latest ISM manufacturing PMI is going to be the main focus for investors today and that will impact how the US Dollar Performs.