Through trading on Friday, the Pound to US Dollar exchange rate soared to 1.3048 while the currency also made gains against the Euro, reaching 1.1031 according to the Foreign Exchange Market. It was a mixed day as the Pound did lose some ground during the morning but then it overturned those losses by the end of the day. There were some concerns surrounding the economic recovery in the UK after it had seen growth during the three months to August, but an expansion of 2% was not what was originally expected. Despite this, Brexit optimism carried the Pound over the line at the end of the day.
Improved market sentiment bolstered the Euro on Friday and the uptick in rates still occurred even with coronavirus concerns hanging over the single currency. This saw the Euro to US Dollar rate rise to 1.18 although it struggled against the Pound by the end of the session. The latest ZEW surveys will be of particular interest this week and could dictate the way in which the Euro performs.
The appeal of the US Dollar was suppressed by a risk-on mood which came from the hopes that a US stimulus package would become more likely. The news that President Trump was making a recovery also helped, although the US political uncertainty could cause the US Dollar to experience some volatility in the coming weeks.