At the start of trading on Wednesday, the Pound saw a slight drop after news spread that the UK could be looking at a second lockdown following the significant rise in coronavirus cases. However, it regained those losses later on in the day after it became apparent that a Brexit deal could be done next month. This saw the currency finish the day at 1.1056 against the Euro and 1.2989 against the US Dollar according to the Foreign Exchange Market.
With the coronavirus situation growing gravely worse each day, the Euro was left struggling on Wednesday as Germany and France announced that they would bring in national lockdowns. Investors will have their eyes on several economic releases although the European Central Bank’s latest decision is going to be influential on the direction that the single currency takes.
The US Dollar performed extremely well during trading with the US Dollar to Euro rate reaching 1.17 / 0.85. However, the current coronavirus situation saw investors seek comfort in the safe-haven currency following a wide market sell-off. The US presidential election is also governing the performance of the greenback, with investors keeping an eye on the way the polls are moving.