The Pound struggled on Tuesday as developments in the Coronavirus situation left the currency seemingly motionless. As news of another variant emerged, it left investors wondering when the current restrictions are likely to be removed.
This left the Pound finishing the day at 1.1347 against the Euro and 1.366 against the US Dollar according to the Foreign Exchange Market. It’s likely to be another quiet day for the Pound with the finalised PMI figures for January likely to show that the private sector contracted considerably during the previous lockdown.
The Euro took a dive on Tuesday following a smaller-than-expected contraction in the economy across the Eurozone during Q4 of 2020. Causing concerns that a double-dip recession is likely. The vaccination rollout failure so far is also causing concerns throughout Europe and that is likely to cause problems for the economy as it’s likely that lockdowns will remain in place.
The US Dollar made some early gains yesterday as the ongoing concerns around the US stimulus package forced investors to take advantage of the Greenback. Despite this, the gains were restricted as Wall Street appears to have calmed down. The latest ISM non-manufacturing PMI is likely to be the main focus for investors today.