At the end of Friday’s Session, the Pound struggled to gain any traction.
This was down to the increasing coronavirus statistics and the issues around the supply chain in the UK, both of which placed pressure on the currency. This saw the Pound finish at 1.1668 against the Euro and 1.3765 against the US Dollar. Looking at the rest of this week, a lack of data is likely to mean that the Pound is not going to build any momentum.
As the session closed last week, the Euro finished on a high as the negative correlation with the US Dollar pushed it higher. German inflation continued to improve this month which helped to give the single currency even more strength. Investors will be keeping an eye on the consumer price index as this could force the European Central Bank to rethink its dovish stance.
Following Jerome Powell’s Speech on Friday, the US Dollar shrunk. Powell said that the Fed might begin tapering this year although no indication of when was provided. This left investors disappointed although this week, they are likely to be focussed on the latest ISM manufacturing PMI.