The Pound saw some good gains during trading on Monday following comments from the Bank of England about the hope surrounding the economic recovery in the UK.
There is not a lot of notable data being released today which means that coronavirus progress will be the main focus for investors. At the end of the day, the currency finished at 1.1663 against the Euro and 1.3823 against the US dollar according to the Foreign Exchange Market.
The Euro lost some ground on Monday as the industrial production figures in Germany were lower than expected, delivering a surprise contraction in factory output in January. This meant that the Euro was at risk of being exposed to pressure from the US Dollar as the negative correlation caused EUR exchange rates. The Eurozone’s latest GDP estimate is going to prove important to investors today.
The US Dollar continued upwards yesterday as the currency continued to move in the same direction as US Treasury yields. The strengthening US Dollar came off the back of President Biden’s stimulus package being passed by the US Senate, giving hope that the US economy could bounce back quicker than expected.