A new six-week low was hit during trading on Wednesday as the Pound to Euro exchange rate dropped to 1.1016 as indicated by the Foreign Exchange market. This followed the publication of the internal market bill from the UK government which indicates that there will be changes to the EU withdrawal agreements. This left investors concerned as the European Commission President indicated that it would break international law. Despite this, the currency did bounce back after it was confirmed that the bill would not bring an end to Brexit trade talks. The Pound finished the day at 1.3007 against the US Dollar, up from the previous day.
New forecasts will be published by the European Central Bank which could indicate that it has more confidence in the economy, with expectations suggesting that GDP expectations will be revised upwards. This caused the Euro to gain some ground against both the Pound and the US Dollar.
Some of the recent gains seen by the US Dollar were lost on Wednesday after an improvement in market sentiment. This came despite improvements in the US jobs market whereby it found itself in the best position since the pandemic started.