As the year came to an end, the Pound edged higher on Thursday following the news that the UK and the EU had passed the Brexit trade agreements. The gains were then extended following news that the UK markets could continue using EU trading platforms for the first quarter of 2021.
Furthermore, the news of the Oxford-Astrazeneca vaccine being given the green light also helped to boost the Pound although news of further lockdown restrictions could prove to be a problem for the currency. However, trading at the end of the week saw the Pound finish the day at 1.1192 against the Euro and 1.3672 against the US Dollar according to the Foreign Exchange Market.
There were losses for the Euro as the year came to an end, however, the negative correlation with the weak USD exchange rates helped to recover some losses. Today, gains could be restricted as the manufacturing PMI has been revised downwards while increasing coronavirus infections are also placing further pressure on the single currency.
Following a correction in USD exchange rates, the US Dollar managed to recover some losses while a reduction in initial jobless claims also had an impact. However, the greenback is likely to experience volatility due to continued talks around relief payments.