On Monday, the Pound initially lost some ground, eventually reaching a new one-month low against the US Dollar, although it did rebound and hold firm as the day progressed.
Sterling was impacted by reports that the easing of restrictions would be delayed for four weeks, with investors worried about the recovery of the economy. Furthermore, pressure from ongoing talks between the UK and EU over the Northern Ireland protocol also placed pressure on the currency. This saw the Pound finish the day at 1.1639 against the Euro and 104108 against the Us Dollar according to the Foreign Exchange Market.
Through the session yesterday, the Euro edged upwards with industrial production figures coming in better than expected. Production had increased by 0.8% which beat market forecasts, helping to boost the single currency. Through today, the trade figures for April could impact the Euro as the figures might come in higher than expected.
There were small losses for the US Dollar yesterday as investors remained hesitant prior to the Federal Reserve’s policy meeting which is taking place on Wednesday. There was nothing driving the US Dollar which meant that the currency was impacted by the positive movement of other currencies.