Following a two-week low, the Pound gathered momentum on Wednesday as the Foreign Exchange rated hinted that the mood of the market was having a positive impact on the currency. It ended the day at 1.1402 against the Euro and 1.2340 which was an improvement on the previous day. However, any increases were dampened by the consumer price index as demand for fuel and clothing dropped.
It was a different story for the Euro as the currency struggled somewhat, especially as confidence in international payments and within the Eurozone dropped quicker than anticipated as Covid-19 still grips the economy. The EU summit was also playing on the single currency as investors had concerns over whether leaders would come to an agreement on a mutual fiscal response. Following this, the flash PM figures today will also keep investors concerned as the single currency is still likely to suffer from a lack of demand.
In similar form, the US Dollar also had difficulties on Wednesday as an improvement in market sentiment hit demand for the safe-haven currency. This was all down to oil prices showing some stability and the hope of another US stimulus package being passed to help improve growth.