The Pound strengthened against many of its rivals on Friday as there was optimism surrounding the Northern Ireland protocol.
Investors had high hopes as negotiations continued as the change in tone and approach from the UK was welcomed by the European Commission. This saw the currency finish the day at 1.1713 against the Euro and 1.3405 against the US Dollar according to the Foreign Exchange Market.
It was a difficult end to the week for the Euro as Eurozone industrial production contracted for the second month in a row. There were also political tensions between the EU and Belarus and this placed pressure on the single currency, especially as threats to halt gas supplies to the EU were made in reaction to planned EU sanctions.
The US Dollar lost some of the ground it had made at the start of the week after some profit-taking and a risk-on mood. A lack of positive data also worked against the Greenback as the University of Michigan’s consumer sentiment index dropped which came as a surprise to investors. As the week begins, it’s likely that risk appetite is going to be the main driver behind the direction of the currency.