As the week came to a close, the Pound continued to push higher despite news that the UK would be putting the brakes on some of the easing of coronavirus restrictions. Despite this, according to the foreign exchange market the currency finished Friday at 1.1109 against the Euro and 1.3085 against the US Dollar. These restrictions could cause a problem for the recovery of the economy but this coming week is likely to be impacted by the latest interest rate decision from the Bank of England.
The Euro slipped back again at the end of trading on Friday as the Eurozone recorded a record drop in GDP during Q2. This saw the economy shrink by 12.1% and that put the Eurozone into recession for the first time since 2013. Investors will keep an eye on the manufacturing PMI for July as this could kickstart the Euro rates should factory activity be revised higher.
There was a slight recovery for the US Dollar on Friday as investors flocked to the safe-haven currency after market risk appetite dropped somewhat. Spending in the US rose at a faster rate than expected and with that came improved domestic inflation.