On Thursday, the Pound took a solid stance and strengthened, still benefiting from the inflation data that came in on Wednesday.
However, as the day progressed, the currency lost some of those gains following some profit taking but again, it bounded back despite covid cases increasing rapidly across the UK. As a result, the Pound finished at 1.1697 against the Euro and 1.3933 against the US Dollar according to the Foreign Exchange Market.
The Euro lost ground against many of its peers yesterday even though inflation rose by 2% during May. There was also positive news in relation to construction data as input had increased by 42.3% during April which is higher than expected. This data helped to reduce the losses, especially as there is an increase in demand for the US Dollar.
The US Dollar continued its upward movement yesterday after the interest rate policy decision from the Federal Reserve. It also announced that it would more than likely raise rates and taper bond buying earlier than expected and that sent the US Dollar upwards. This increase in demand helped to ward off any significant losses after the unexpected rise in jobless claims last week.