The Pound moved in a wide range on Wednesday as it struggled to retain any of the gains it had made.
The currency wasn’t supported by the fact that there were no data releases to help nudge it in the right direction. Instead, optimism surrounding the economy and concerns about the increase in coronavirus cases played a role in determining the direction of the Pound. At the end of trading, the currency finished at 1.1701 against the Euro and 1.3804 against the US Dollar according to the Foreign Exchange Market.
The Euro dropped against many of its major rivals as disappointing German data placed pressure on the single currency. Industrial production in Germany decreased for a second month and that placed the currency in a defensive position.
In contrast, the US Dollar strengthened as risk-averse market sentiment saw demand increase for the safe-haven currency. Lower-than-expected job openings didn’t impact the currency while a disappointing economic optimism index couldn’t cause the currency problems either. Further support for the US Dollar could come in the form of a drop in unemployment benefits claimants, helping the Greenback to strengthen again.