The Pound to Euro exchange rate reached a two-week high on Wednesday after Nicola sturgeon denied that she would look to hold an illegal independence referendum.
This gave investors a slight lift. At the end of trading, the pound closed at 1.1583 against the Euro and 1.3907 against the US Dollar according to the Foreign Exchange Market. The main focus today will be the latest news from the Bank of England’s policy meeting.
It was a defensive day for the Euro yesterday as it continued to suffer at the mercy of negative correlation with the Us Dollar. Despite this, any downturn was limited after the release of the latest PMI which indicated that the private sector had grown.
It was a day of rallying for the US Dollar after investors pounced on comments made by the US Treasury Secretary on possible rate increases. However, the US Dollar lost some ground later in the day once data had been released. The latest ISM non-manufacturing PMI and ADP employment report came in below the expected figures, limiting the direction of the currency.