With the impending budget, the Pound remained fairly subdued on Monday as talk of tax hikes caused concerns. While these worries placed pressure on the currency, the vaccine rollout and hopes of a quick economic recovery continue to limit any losses.
It could be a similar day today as the investors are likely to remain fairly cautious as they await the announcement of the budget on Wednesday. According to the Foreign Exchange Market, the pound finished trading at 1.1558 against the Euro and 1.3924 against the US Dollar.
The Euro struggled as the week started following the increase in the US Dollar. However, the losses seen by the single currency were tempered as the Eurozone’s manufacturing PMI was revised with the figure coming in higher than the initial forecast. The consumer price index is going to be the focus for investors today and this could help to boost the currency.
Monday saw the US Dollar edged higher as hopes increased around the stimulus package being passed. The latest ISM manufacturing PMI also offered some support to the Greenback, as it reached a three year high in February. As trading opened this morning it continued to strengthen against both the Euro and the Pound.