It was Brexit uncertainty yet again that caused the Pound to dip during trading on Thursday. This concern saw the Pound to US dollar drop to 1.3354 while currency held firm against the Euro at 1.1232 according to the Foreign Exchange Market. This was fuelled by reports that the EU’s chief Brexit negotiator would not make the trip to London unless the UK is willing to offer concessions. However, no further data today is likely to mean that much of the pressure on the Pound will come in the form of Brexit news.
There was minimal direction for the Euro on Thursday as the single currency reacted to the news that Germany would extend its coronavirus restrictions through December. Germany also saw its consumer confidence index drop to its lowest point for five months and that placed pressure on the currency. The latest economic sentiment figures released today could see further pressure placed on the Euro.
The US Dollar nudged higher yesterday after demand for the currency increased during the European trading session. This happened as a result of negative market optimism, making the US Dollar appealing to investors.