Further problems with the supply chain in the UK weighed heavily on the Pound on Monday, forcing it to lose ground to many of its peers.
As a result of Brexit-related staff shortages, the UK construction PMI dropped to a new five-month low, heaping pressure on the currency while increasing prices in line with global demand also caused problems. As a result, the Pound finished at 1.1655 against the Euro and 1.3837 against the US Dollar according to the Foreign Exchange Market.
It was a varied day for the Euro yesterday as the impact of the increase in German factory orders was undone by a drop in investor confidence in the EU. Exchange rates were boosted by the rise in German factory orders which increased by 3.4% in July. Despite this, investor confidence has now dropped to the lowest levels seen since April and this forced the single currency to remain fairly range bound.
There was also little movement in the US Dollar yesterday, although it did gain some ground on its rivals. With market sentiment remaining relatively steady, the Greenback eventually remained in a narrow range, giving it a slight rebound overnight.