Ending Monday at 1.1412 against the Euro and 1.2336 against the US Dollar, the foreign exchange rates indicated that the Pound had started the week in a relatively poor position. The weakening of the Pound has been put down to the mass confusion surrounding the lifting of some of the lockdown measures by the Prime Minister. However, Brexit uncertainty was also a driver as further talks have begun as they aim to meet the June deadline around an extension to negotiations.
It was a better day for the Euro on Monday as the single currency moved slightly higher as more areas of the Eurozone began to lift some of the lockdown restrictions, giving fresh hope that this would further unlock the economy. This turn of fortune for the currency might continue as we progress through Tuesday as cases of Covid-19 continue to drop in other areas of Europe, leading to investors opening up to making further international payments.
The US Dollar also gathered momentum yesterday as market sentiment slumped, which left investors running for the safe-haven currency. However, the Greenback was also pushed further based on the likelihood of the Federal Reserve not introducing negative interest rates during 2020.