During trading on Monday, the Pound lost some footing against the US Dollar, dropping from the two year high of $1.36 to $1.357 according to the Foreign Exchange Market. Along with this, it also lost ground against the Euro, finishing off the day at €1.10.
This came after news that another national lockdown was imminent, and so the currency is now at the mercy of coronavirus without the release of notable UK data today.
The Euro gathered momentum on Monday as the single currency reacted to the negative correlation to the US Dollar. Even though Germany extended its lockdown and manufacturing PMI figures coming in lower than expected, the Euro still strengthened. The latest jobs report in Germany is likely to be the main focus for investors during trading today.
The US Dollar lost ground yesterday as market mood improved, leaving the Greenback struggling. This lack of appeal was also placed under pressure by news that Democrats could win both seats in Georgia’s Senate runoffs, which could lead to further US fiscal stimulus. For investors, the latest ISM manufacturing PMI is likely to be the main focus and this could see further pressure placed on the US Dollar.