The Pound made some improvements on Wednesday after the CPI figures for May really impressed while year-on-year inflation increased by 2.1% – the highest level seen for nearly two years.
Despite the delay in lifting lockdown measures, the currency still managed to make gains, with the ongoing tensions between the UK and the EU not holding the Pound back. At the end of trading, the currency finished at 1.1665 against the Euro and 1.3994 against the US Dollar according to the Foreign Exchange Market.
It was a quiet day for the Euro with a slow down in wage growth placing pressure on the single currency. Losses also came following comments from the Central Bank of Ireland after it was announced that the tapering of financial support could cause problems for mortgage borrowers and businesses.
During trading on Wednesday, the US Dollar spent most of its time muted, however, this changed following the Federal Reserve’s June rate decision. The Fed kept interest rates unchanged although its outlook on inflation had changed, stating that they were happy to adjust policy should inflation expectations move too high.