As Friday drew to a close, the pound remained fairly motionless during trading according to the Foreign Exchange market. It finished the day at 1.117 against the Euro and 1.2623 against the US Dollar. The currency struggled due to concerns about Brexit negotiations and very little progress was made between the EU and the UK as there are many differences between the two that need to be ironed out. There is fresh hope today that the Pound could strengthen off the back of higher-than-expected May GDP figures.
The Euro did not perform much differently as things were fairly slow given the fact that there was very little progress in relation to the EU’s coronavirus recovery fund. However, further meetings this week could see further tensions between the four main players and that could cause problems for the Euro. The ZEW economic surveys will be the main focus of investors as any improvements in the EU economy will help give the Euro a boost.
The US Dollar started the day off well as concerns over coronavirus left investors putting faith in the safe-haven currency. Despite this, any gains were quickly lost when it became apparent that there was a contraction in producer prices during June.