It was a strong start for the Pound to US Dollar rate on Monday as this increased to 1.3746 while the Pound to Euro rate also reached 1.1539 according to the Foreign Exchange Market.
Market sentiment was boosted by the reopening of large parts of the economy, giving hope that a strong recovery is around the corner. Through today, it’s likely that the Pound could continue to thrive after news of a domestic rebound in February.
There was very little movement in the Euro on Monday as an increase in retail sales helped to cancel out concerns of the increase in coronavirus rates across Europe. Sales increased from -5.2% to 3% during February, doing much better than expected. The release of the ZEW surveys could provide support for the single currency this morning.
The US Dollar was given a boost during early trading as investors headed for the safe-haven currency. Despite this, the demand slackened as equity markets started to recover and US treasury yields retreated. The US consumer price index will be of interest to investors today as it is expected that there was a sharp increase in inflation during March and that could see the US Dollar surge.