Tuesday saw the Pound struggle against a number of its rivals as it lost ground as Brexit concerns continued to place pressure on the currency.
Even though France held off on sanctions over the finishing right dispute, investors were still concerned about the deadlock in the Northern Ireland Protocol as a lack of deal could bring with it serious repercussions. According to the Foreign Exchange Market, this saw the Pound finish at 1.1759 against the Euro and 1.3616 against the US Dollar.
There was little movement for the Euro yesterday although it did take advantage of some of its weaker peers. However, investors remained cautious as they awaited the Federal Reserve rate decision. The Eurozone’s final manufacturing PMI was revised downwards and that also placed pressure on the single currency, especially as global supply chains continue to cause issues for industries across the bloc.
The US Dollar gained some ground yesterday as the two-day policy meeting of the Fed started. It’s expected that tapering plans will be discussed and so, investors remain bullish as they await the announcement. However, before the decision is announced, US employment figures, factory orders data and ISM services PMI could determine the direction of the currency.