There was more support for the Pound on Wednesday as it reached new highs against the Euro and the US Dollar.
The vaccination rollout is having an impact on the performance of the currency, while the consumer price index was also stronger than expected with an increase in inflation. If coronavirus cases continue to drop and the vaccination programme continues to take effect then the pound could find more support today. At the end of trading, the Foreign Exchange Market indicated that the Pound finished the day at 1.1281 against the Euro and 1.3668 against the US Dollar.
It was a defensive day for the Euro on Wednesday as investors continued to be disappointed by the lack of speed of the vaccine rollout. Further pressure came from the fact that other countries could also extend their lockdowns but the outcome of the latest European Central Bank policy meeting is the main focus for investors today.
A lack of demand left the US Dollar struggling yesterday on the day that Joe Biden was inaugurated. Despite this, it did gather some momentum during the latter half of the European session although that did not last long as markets reacted to Biden’s first decisions after he was sworn in.