The Pound trended in an upwards direction on Tuesday as the GBP to USD rate increased again while there were also gains made against the Euro. As a result, it rounded off the day at 1.1297 against the Euro and 1.3741 against the US Dollar according to the Foreign Exchange Market. These gains came after the unemployment figures for November were better-than-expected, despite rising to 5%. Accompanying this was news that wage growth had also risen above expectations, giving investors something to hold onto.
There was a broad weakness in the US Dollar yesterday and this benefitted the Euro due to a negative correlation. Despite this, the single currency still failed to make any decent gains and that was put down to the resignation of the Italian Prime Minister as he looks to form a new government.
The US Dollar suffered yesterday after there was an increase in market risk, limiting the appeal of the safe-haven currency. The International Monetary Fund made a revision to its global growth forecast, increasing it from 5.2% to 5.5%, giving markets much to be excited about. However, the release of the first rate decision this year from the Federal Reserve is likely to have an impact on the direction of the US Dollar today.