Energy Crisis Forces Pound to Tumble

On Thursday the Pound lost ground against both the Euro and the US Dollar, rounding off the day at 1.1727 and 1.3797 respectively, according to the Foreign Exchange Market.

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This came following the news of a UK energy crisis as rising gas prices forced businesses to close as a result of becoming unprofitable. This placed a real dent in the Pound forcing it to stumble as investors lost faith in the currency. A drop in retail sales today might also add some additional pressure to the Pound today.

The Euro started the day on shaky ground as it struggled against a stronger US Dollar. Despite this, it managed to recover during the afternoon following an unpublished inflation estimation from the European Central Bank which indicated that a rate increase could be likely in just over two years. 

During trading yesterday, the US Dollar soared as investors opted to take fewer risks and so, they took haven in the currency. Retail sales had surprisingly increased which provided some support for the Greenback while domestic sales also increased which was better than expected, adding to the support that the currency had already received.

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