Tuesday was a day of mixed fortunes for the Pound as it reached a new one-month low against the US Dollar and lost ground against the Euro.
According to the Foreign Exchange Market, the currency finished the day at 1.4081 and 1.1611 respectively. The currency faced pressure following concerns of the delay of reopening, despite figures suggesting that unemployment had dropped in April. It could receive some support today from the latest CPI while the surge in inflation in May could also help to bolster the Pound.
The Euro soared higher yesterday with the European Stock Markets growing for the eighth day in a row. This was boosted by the current speed of the vaccination programme as well as the European Central Bank’s continued bond-buying through the pandemic emergency purchase programme.
There was some support for the US Dollar on Tuesday morning although the afternoon saw very little movement following a downbeat mood ahead of the Fed’s policy announcement. The interest rate decision will be of interest to investors as they will be looking for signs that the bank might begin to taper bond purchases. Along with this, the Greenback also suffered at the hands of poor retail sales during May.