It was a slow day for the Pound on Monday after a shortage of data meant that there was a lack of directions or the currency.
However, Sterling did face some headwinds in the form of the increasing number of Covid cases as well as the newly announced increase in National Insurance, both of which kept a grip of the currency. There may be better news for the Pound today as the unemployment rate dropped and job levels have reached pre-pandemic levels. At the end of trading, the currency finished at 1.1718 against the Euro and 1.3839 against the US Dollar according to the Foreign Exchange Market.
The Euro initially lost ground yesterday although it did pick up during the afternoon, taking a sideways move as market mood improved. This resulted in a drop in the appeal of the US Dollar which gave the single currency a much-needed boost.
It was a strong start to the day for the US Dollar although with a rise in risk appetite, it lost some of those gains. The change in direction came as a result of a Deutsche Bank Survey that highlighted optimism among investors following a strong recovery this year.