The Pound grew considerably against the Euro and US Dollar, rounding off Monday at 1.1639 and 1.4128 respectively, according to the Foreign Exchange Market.
This came after investors were happy that the Scottish National Part failed to achieve an outright majority during the elections last week. Furthermore, news that even more covid restrictions would be relaxed from next week also helped to bolster the currency.
The Euro had a challenging day after uncertainty around the European Central Bank’s plans weighed heavily on the single currency. This is down to the fact that policymakers might start to taper is bond purchases next month or allow inflation to rise beyond the target for a period of time. The latest ZEW surveys will be the main focus today and this could mean that the Euro faces further challenges today.
It was a defensive start to the week for the US Dollar yesterday after the currency continued to suffer from the disappointing payroll print last week. The risk-on mood also undermined the currency while dovish Federal Reserve interest rate expectations also placed pressure on the Greenback.