On Friday, the Pound weakened following the Bank of England’s policy announcement although things have improved during the start of this week.
Investors did expect a more Hawkish message from the BoE even though it did raise inflation forecasts. The currency was also being held back by the ongoing concern around the latest Delta coronavirus variant and the impact it will have on the reopening of the economy in three weeks time. At the end of trading, the currency finished at 1.1631 against the Euro and 1.3885 against the US Dollar according to the Foreign Exchange Market.
The Euro has started the week on a steady footing although this week has lots of data releases that are likely to impact the single currency. Sentiment figures for the Eurozone will be released tomorrow while inflation data for Germany will also be released. Along with this, PMI figures for Germany and the Eurozone will also be released and that will determine the direction of the Euro.
The US Dollar regained some losses on Friday and this morning it has started the week in a good position against the Euro and the Pound. More data releases including Non-Farm payrolls which is likely to show that the US economy added more jobs while Manufacturing PMI data will also be released.