Change in Market Sentiment Gives US Dollar a Boost

The Pound managed to recover some of its losses on Thursday as it firmed following its poor performance on Wednesday following the announcement that new Covid-19 restrictions would be put in place.

It looks as though the upside comes from many other currencies weakening and investors looking to make shrewd investments. According to the Foreign Exchange Market, the Pound finished at 1.1709 against the Euro and 1.3223 against the Us Dollar.

It was a quiet day for the Euro as it reacted to a narrowing of trade surplus in Germany. This raised concerns that the biggest economy in Europe might not recover as swiftly as expected. Causing more problems for the single currency was strong US data which meant that the Euro suffered from a negative correlation against the US Dollar.

The US Dollar experienced a change in risk sentiment on Thursday as new covid measures were put in place in the UK. Along with this, tensions around the globe and concerns around the debts of Chinese property company Evergrande all worked in favour of the Greenback. Furthermore, an improvement in the US initial jobless claims figure saw it hit the lowest level for 50 years and that helped to give the US Dollar a further boost.


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