Pound Drops as US Dollar Climbs

The Pound was left vulnerable to losses on Tuesday as it lost ground against many of its rivals due to a lack of data.

The Omicron variant of Covid-19 is a cause for concern and with cases rising, investors are concerned that new restrictions could dent the economic recovery. The ongoing Brexit fishing row is still weighing heavily on the currency but at the close of trading, the Pound finished at 1.1751 against the Euro and 1.3246 against the US Dollar according to the Foreign Exchange Market.

The Euro also lost ground on Tuesday as mixed data from across Europe put a dent in the single currency while investors took a risk-on market mood. German industrial production beat expectations but the German ZEW economic sentiment index dropped and that placed pressure on the currency. A lack of data today could also leave the Euro exposed to further losses.

It was a mixed day for the US Dollar as demand for the safe-haven currency was dented thanks to a bullish market mood. However, the Greenback managed to rise against the Pound and the Euro following hawkish comments from the Federal Reserve.

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