The Pound started Monday off well, increasing against many of its peers even after the Bank Of England announced again that the UK is experiencing a V-shaped recovery. There are still concerns about the relationship with China after the extradition treaty with Hong Kong was suspended by the Government. This could cause problems for the currency although it did round off the day at 1.106 against the Euro and 1.2659 against the US Dollar according to the Foreign Exchange Market.
EU coronavirus recovery fund talks continued through Monday and that left the single currency remaining relatively steady although there was hope that the EU leaders would come to an agreement. Eventually, they came to a deal overnight and that is likely to have a positive impact on the Euro moving forward. As a result, this did lead to some profit-taking this morning as investors finally had confidence in the single currency.
There was not much in the way of movement for the US Dollar yesterday as demand for the currency was eased by the news that progress was being made in the race for a coronavirus vaccine. This did help to ease concerns about increasing cases although, with very little data, the US dollar might hold the same position through trading today.