There were more murmurings on Thursday that the UK could go into a full second lockdown as a result of growing coronavirus cases. This forced the Pound to edge lower, rounding off the day at 1.1073 against the Euro and 1.2928 against the US Dollar according to the Foreign Exchange Market. There was not much information relating to Brexit talks either and that meant that investors had concerns about the position of the currency.
The Euro to US Dollar rate fell for the fourth session in a row and that was down to the lack of hope from the latest policy meeting of the European Central Bank. This month, it announced the monetary policy would remain unchanged but a warning was issued regarding the below-forecast growth during Q4 which means that November is looking bleak. The latest GDP figures are forecast to show a rebound during Q3 but this might not be enough to support the single currency.
The US Dollar took an offensive stance on Thursday after investors took a chance on the safe-haven currency. US GDP had experienced a record bump during Q3 although this didn’t please investors as they now have an eye on the impact of coronavirus on the economy during Q4.