On Tuesday, the Pound took a defensive stance as investors became concerned with the reports that the government might pause on reopening the economy on 21st June.
This is down to the increase in the Delta variant of coronavirus and it’s spread throughout the UK. To add to the woes of the currency, the UK manufacturing PMI was also revised lower. As a result, the Pound finished the day at 1.1584 against the Euro and 1.415 against the US Dollar according to the Foreign Exchange Market.
The Euro nudged higher yesterday as better-than-expected data releases helped to bolster the single currency against many of its peers. Investors welcomed the latest manufacturing PMI and inflation figures from the Eurozone as they came in higher than expected during May.
The US Dollar was relatively range bound yesterday as the demand for the safe-haven currency was limited by a bullish market mood. This came about following the latest ISM manufacturing PMI which was better than expected, showing that US factory growth had expanded. Looking forward, with no data to direct the currency, US investors will focus on the Federal Reserve for some direction today.