As some of its peers weakened, the Pound took advantage on Tuesday and moved higher with the currency strengthening in readiness for the summer update from Rishi Sunak. This saw the currency round the day off at 1.1124 against the Euro and 1.2541 against the US Dollar according to the foreign exchange market. How the Pound performs today will be reliant on the announcement from the chancellor on the position of the UK economy as well as the stimulus measures to be introduced.
After the Pound ticked higher, the Euro struggled through trading on Tuesday following the changes made to the Eurozone Growth forecast for 2020 as it was slashed by the European Commission. This saw the forecast in contraction of the economy in the Eurozone increase from an estimated decline of 7.7% to 8.7%. As a result, the Eurozone is likely to struggle as the recession is likely to be worse than originally predicted.
There was some stability for the US Dollar as a reduced market sentiment meant that investors took advantage of the Greenback and its safety. However, the currency was buoyed by the fact that there was an increase in job opportunities during May with figures being better than expected.