Domestic coronavirus concerns forced the Pound into a slow start to the week on Monday.
While the GBP to USD remained firm, the Pound to Euro rate hit a one week low. This saw the Pound finish at 1.1589 against the Euro and 1.4158 against the US Dollar according to the Foreign Exchange Market. With new coronavirus cases rising, there are concerns that the UK Government might rethink the roadmap for easing lockdown, which could have an impact on the economy.
The Euro gained a firmer stance on Monday and that meant that the upboat market mood saw investors attracted to the single currency. The vaccine rollout continues to pick up pace with many countries now opening up their economies and even accepting tourists. The currency might feel some pressure today following the latest GDP from Germany, which came in lower than expected.
The US Dollar had to take a defensive stance yesterday as US Treasury yields fell. Adding further pressure to the currency were the latest comments from the Federal Reserve Governor who claimed that the latest surge in inflation is transitory. With no notable data releases today, the US Dollar might continue to struggle.