Looming Freedom Day Causes Pound to Slide

On Friday, the Pound lost ground against many of its peers after investors grew concerned about the reopening of the UK.

Pressure was also placed on the currency as a result of the increasing coronavirus cases, with there being no signs of it slowing down either. This saw the Pound finish the day at 1.1659 against the Euro and 1.3765 against the US Dollar according to the Foreign Exchange Market.

Through the session on Friday, the Euro strengthened even though there was some disappointing data coming from the Bloc. Trade surplus in the Eurozone narrowed by €3.4bn, which was a lot lower than expectations. Furthermore, the inflation rate dropped to 1.9% from 2%, which supports the European Central Bank’s dovish tone relating to inflationary pressures.

It was a mixed day for the US Dollar as this traded sideways following a mixture of data releases. There was an improvement in retail sales during June although the previous month’s figures were altered, showing a bigger drop in sales than initially thought. However, a more risk-off change to the market mood helped to support the Greenback.

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