An increase in economic optimism helped to bolster the Pound on Tuesday as sentiment increased.
This upbeat tone followed the latest news of covid restrictions being eased from next week, and that resulted in hopes for a significant economic rebound this year. As a result, the Pound finished the day at 1.1642 against the Euro and 101442 against the US Dollar according to the Foreign Exchange Market.
There were small gains for the Euro on Tuesday after the latest German ZEW economic sentiment index helped to bolster hope. The figures came in above expectations rising from 70.7 to 84.4 and that resulted in economic sentiment reaching the highest levels seen since 2000. As the vaccine rollout continues, it’s likely that hopes are going to rise in relation to a speedy economic recovery.
Tuesday was a quiet day for the US Dollar after it struggled, even with a risk-off mood being unable to nudge the Greenback in the right direction. The disappointing payroll figures underpinned the poor performance and how they could impact the monetary policy of the Federal Reserve. Looking ahead, the US consumer price index is going to play a role in the direction of the safe-haven currency.