It was a slow start for the Pound on Thursday over concerns that lockdown would be extended in England while investors were worried about the potential vaccine shortages.
Despite this, things improved for the currency after vaccine concerns were dismissed by Minister Michael Gove. As it currently stands, a lack of notable data will mean that the direction of the Pound will be driven by coronavirus development. However, at the end of trading yesterday, the currency finished at 1.1324 against the Euro and 1.3724 against the US Dollar according to the Foreign Exchange Market.
The Euro grew in strength against its peers yesterday after the German consumer price index was better than expected. This gave the single currency a boost despite the ongoing weak inflation problem across the Eurozone. Today, the release of the German preliminary GDP release for quarter four will have an impact on the Euro.
A lack of risk appetite proved fruitful for the US Dollar at the start of trading although this was short-lived. An expansion in US GDP during the fourth quarter helped to boost market sentiment. The main focus for investors today will be the latest PCE price index and the chosen indicator for inflation could indicate an increase in price growth in December.