Uncertain market conditions saw the Pound on the defensive during trading on Wednesday. A lack of Brexit news added pressure to the struggling currency but also the impending lockdown that was on the horizon after midnight. With all of this in mind, the Pound rounded off the day at 1.1052 against the Euro and 1.2967 against the US Dollar, which saw it drop below the key resistance line according to the Foreign Exchange Market.
The Euro stood firm through the session as it managed to regain some of the losses it experienced against the US Dollar. This was mainly down to the news that the private sector just managed to avoid contraction during October. Despite this, there could be challenges for the single currency today as the latest retail figures are due to be released.
The US Dollar edged higher following the equity markets reacting to uncertainty around the US election. However, the gains began to disappear as it was understood that Biden could steal a victory and that forced the market to recover, lowering demand for the greenback. With election updates still coming, USD investors will have one eye on the results of the latest policy meeting of the Federal Reserve.