Brexit uncertainty impacted Sterling sentiment on Monday, causing it to fall behind according to the Foreign Exchange market. The pound finished the day at 1.1069 against the Euro and 1.2558 against the Us Dollar – a significant drop from the rates seen at the end of last week. As the days roll by, there is an increased risk of a no-deal Brexit, causing further problems for the currency. It has also been revealed that UK GDP did not perform as well as expected, leaving the pound on the defensive once again.
The Euro pushed higher through Monday as the economic outlook for Germany was a positive one, pleasing investors and improving sentiment. It indicated that Germany had passed the lowest point and that an increase in industrial orders shows that the country is making progress. However, any improvements could be short-lived if the ZEW economic surveys are not positive, potentially causing the Euro to slip back.
There was fresh hope and improved market sentiment on Monday, causing the US Dollar to slow in pace. This was encouraged by the hope that a new coronavirus treatment might be found. However, today, the latest CPI figures could support the US Dollar as they could indicate a rise in inflation during June.