Inflation Reading Forces US Dollar Downwards While Pound Remains Muted

The Pound had a relatively quiet day on Friday after data showed that GDP growth had slowed to 0.1% in  October.

Despite the disappointing data, the Pound still remained relatively strong as it managed to move sideways and it even strengthened against some of its rivals. However, the news of new restrictions and working from home placed some downward pressure on the currency. According to the Foreign Exchange Market, the currency finished at 1.1726 against the Euro and 1.327 against the US Dollar.

It was a mixed day for the Euro at the end of the week after it lost ground following the release of the German inflation rate. It did manage to make up some ground during the afternoon although it did benefit from a strong negative correlation with the US Dollar.

The US Dollar experienced a sharp drop on Friday even with US inflation reaching a 39-year high of 6.8%. Despite this, the drop came as a result of profit-taking with investors looking to take advantage of the price of the Greenback.

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