Lack of Direction For Pound as Euro to US Dollar Rate Rallies

The Pound had difficulty finding any kind of direction on Wednesday as there was no catalyst to give it the boost it needed.

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This meant that investors were left to place their focus on the ongoing vaccine rollout and how further potential problems from around the world could impact the UK. As a result, the currency finished the day at 1.1498 against the Euro and 1.3775 against the Pound according to the Foreign Exchange Market.

There was a slight improvement in the Euro yesterday after it benefited from the weakness of the US Dollar as well as the Eurozone industrial production reading that was better than expected. Despite this, the gains were limited after the European Central Bank warned that Europe is still grappling with the ongoing pandemic. The release of CPI figures from Germany might help to support the single currency today.

It was a motionless day for the US Dollar following a dip in Treasury yields which reduced the appeal of the Greenback. There was further pressure placed on the US Dollar from the Federal Reserve after concerns of rising inflation were dismissed, indicating that the bank is not likely to increase interest rates until the end of 2022.

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