During the start of trading on Wednesday, the Pound received a lot of support, especially after the Bank of England downplayed the introduction of negative interest rates.
Despite these gains, the currency was unable to hold onto them following the latest coronavirus news, with the country seeing its highest number of daily deaths since the start of the pandemic. There is not a lot of data available to boost the currency either, and so, all eyes will be on the coronavirus news. However, the Foreign Exchange Market indicated that the Pound rounded the day off at 1.1222 against the Euro and 1.3647 against the US Dollar.
The Euro was pushed lower yesterday following the concerns made from the European Central Bank about the impact of the Euro exchange rate. The single currency was also affected by the potential collapse of the Italian government following budget disagreements. The German budget is likely to be the main focus of today, as it looks towards its economic recovery.
Inflation and a risk-off approach saw the US Dollar nudge higher yesterday. The US political uncertainty bolstered the appeal of the US Dollar and with news of President Trump being charged with impeachment, it’s proving to be an interesting time for the Greenback.