The latest GDP figures disappointed investors and that saw the Pound drop sharply during trading on Tuesday. The expected growth in the UK economy was expected to reach 5.5% during May but the figures painted a bleak picture, coming in at 1.8%. Therefore, the currency really struggled, finishing the day at 1.102 against the Euro and 1.2573 according to the Foreign Exchange market. There was further bad news as analysts estimated that the economy would likely drop by 25% during the second quarter mounting further pressure on the pound.
The Euro took off during trading on Tuesday, as the single currency took advantage of improved market mood. The latest ZEW surveys indicated that the economic sentiment dropped at a faster rate than expected this month in Germany, although this didn’t stop the Euro in its tracks.
The US Dollar fell back during trading on Tuesday as enhanced market sentiment resulted in there being a lack of appeal in the safe-haven currency. Even better-than-expected CPI figures could not win back investors, causing the US Dollar to benefit from a small break in the wide-scale sell-off. However, news of a Coronavirus vaccine moving to the next human trial phase might help the US Dollar today.