A change in the market mood on Tuesday meant that the Pound weakened against its peers. In recent months, the currency has become susceptible to changes in risk sentiment and this is down to the uncertainty around Brexit and the impact of coronavirus. As there is a lack of economic data being released today, all eyes will be on the information that arises from coronavirus and how the government plans to ease restrictions further. At the end of Tuesday, the foreign exchange rate saw the Pound come in at 1.1227 against the Euro and 1.2731 against the US Dollar.
The Euro made some progress on Tuesday as a result of the release of the latest GDP estimate in the Eurozone. GDP had fallen by 3.6% although this was a lot better than expected as the estimations suggested that there would be a contraction of 3.8%. Today, investors will be looking at their investments and international payments based on how the eurozone continues to battle coronavirus and the damage it has caused to the economy.
Despite a slight downturn in market risk sentiment, the US dollar did make some gains yesterday. The movement was put down to the poor trade figures seen in Europe, however, the Federal Reserve is likely to publish the first economic forecast since December and that will catch the eye of investors.