Pound Loses Ground Following News of New Covid Strain

A lack of optimism surrounding a Brexit trade agreement forced the Pound to struggle on Friday. Furthermore, a new variant of coronavirus has also been found, causing concerns that the economy is going to be closed down once again, placing further pressure on the economy. However, as the news was confirmed the Pound lost ground against both the Euro and the US Dollar. Still, with no deal yet agreed after the weekend, it’s looking increasingly likely that the currency is going to suffer at the hands of a no deal. At the end of trading on Friday, the currency finished the day at 1.1031 against the Euro and 1.3521 against the US Dollar according to the Foreign Exchange Market.

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Despite the German IFO business sentiment survey coming in better than expected, the Euro still didn’t improve as much as expected. However, the Flash Eurozone Consumer Confidence Index will now become the main focus for investors.

As market sentiment soured, the US Dollar experienced renewed momentum on Friday. Further doubts about the fiscal stimulus package agreement grew and the new strain of Coronavirus helped to bolster demand in the safe-haven currency.

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