Despite suffering from failed EU-UK talks on the Northern Ireland protocol, the Pound made a recovery on Thursday afternoon.
Talk from the European Central Bank indicated that it could be too early to begin discussing tapering bond purchases while the Pound also gained ground against the US Dollar. This saw the currency finish off the day at 1.1643 against the Euro and 1.4173 against the US Dollar according to the Foreign Exchange Market.
The Euro lost its footing yesterday as it reacted to the latest rate decision from the European Central Bank. The bank decided to keep interest rates at a record low although negative comments from Christine Lagarde did impact exchange rates while she also warned that the Eurozone has a long way to go until the economy becomes stable again.
The US Dollar struggled through trading on Thursday. This came despite, year-on-year inflation hitting 5% in May, which is the highest rate seen since August 2008 and was above the original forecast. However, this didn’t translate into gains for the currency as there are concerns that the Federal Reserve will not taper bond purchases any time soon.