On Tuesday, the Pound started to regain some of the losses it experienced during the second half of last week.
The Pound to Euro rate reached the highest levels since April, while it also managed to make some gains against the US Dollar. This saw the pound finish the day at 1.1683 and 1.395 respectively, according to the Foreign Exchange Market. Despite the aggressive expectations for the Bank of England’s forthcoming interest rate decision, Sterling still managed to strengthen.
The Euro to US Dollar rate reached a one month low on Tuesday as Brexit concerns placed the Pound on the back foot against a strengthening US Dollar. This is down to ongoing talks about the Northern Ireland protocol, leaving investors concerned that future trade talks could be impacted.
After the successful rally during the second half of last week following the latest rate decision of the Federal Reserve, things have started differently for the US Dollar this week. A change in tone from the Federal Reserve regarding a revision of forecasts pushed the US Dollar upwards. However, on Tuesday, some of these gains were lost as the currency suffered at the hands of some profit-taking.