On Thursday, the Pound lost some ground following the release of the UK’s CPI which came in below expectations and that means that the chances of a rate increase at the Bank of Englands next policy meeting are highly unlikely.
Despite this, the currency did manage to retrieve some of those losses as it rebounded during the afternoon, making gains against many of its rivals. This saw it finish at 1.1865 against the Euro and 1.3825 against the US Dollar.
A lack of market-influencing data left the Euro struggling against its peers yesterday and this opened up the single currency to losses. There was further pressure mounted on the currency from the European Central Bank after it took a dovish stance as policymakers took a subdued approach to the high inflation rate across the bloc.
A big sell-off weighed heavily on the US Dollar yesterday as investors took a risk approach and looked at other assets. This upbeat mood was boosted by positive developments which indicate that the US economy is recovering, especially with lockdown restrictions easing and covid cases around the world in decline.