During trading on Tuesday, the Pound struggled to make any progress as it lost some of its gains against the US Dollar and the Euro although it did climb against others.
The Northern Ireland Protocol tensions appeared again and that pushed the currency downwards, even though a three-month extension to the grace period had been implemented. As a result, the Pound finished the day at 1.1675 against the Euro and 1.38 against the US Dollar according to the Foreign Exchange Market.
A rebound on Tuesday saw the Euro make up some ground against many of its major rivals yesterday even though German data fell behind expectations. There was a drop in factory orders and even bigger drops in economic sentiment for Germany and the Eurozone which pushed the single currency downwards. Despite this, the afternoon was better as the currency did manage to gain back some of its losses.
Even though ISM non-manufacturing PMI didn’t meet expectations, the US Dollar still strengthened yesterday. This uptick came as investors avoided any risks, all of which came after a drop in equity markets and that saw demand for the US Dollar increase.