The Pound trended lower on Thursday against its peers as the currency finished the day at 1.1519 against the Euro and 1.3842 against the US Dollar according to the Foreign Exchange Market.
Many of these losses were caused by a drop in market sentiment as there are concerns that coronavirus infections could increase again. However, today, the latest PMI releases are going to determine the direction of the currency after business activity grew at a faster rate than expected.
The Euro edged higher yesterday after there was some cautious optimism from the European Central Bank. With growth and inflation improving, the Euro strengthened although the ECB did commit to maintaining its extremely accommodating monetary policy.
On Thursday, the US Dollar strengthened after there was another drop in US jobless claims, helping to bolster exchange rates. Claims dropped to 547,000 from 589,000, bettering forecasts proving that the US jobs market could be mounting a strong recovery. The release of the latest US Markit PMI’s could also help to boost the US Dollar, especially if the private sector continues to experience solid growth.