Throughout Friday trading, the Pound benefited from hopes that the UK economy was taking another step towards recovery after more areas were opened on Saturday. The Pound / USD exchange rate moved higher although the GBP / Euro rate remained fairly subdued. As a result, the foreign exchange market closed with rates sitting at 1.1049 against the Euro and 1.3085 against the US Dollar. However, the currency could struggle to gain traction this week as inflation could show signs of slowing down and that will cause problems for the Pound.
The latest employment figures for the Eurozone did not meet expectations and so, the Euro saw very little movement on Friday. Employment growth dropped by 2.8% which is more than the expected 1.7% that was expected. However, more misery is likely to be piled on the single currency as many countries across Europe are experiencing a rise in coronavirus cases.
There was a positive market mood through Friday and so, investors moved away from the US Dollar, pushing down demand for the safe-haven currency. The improved sentiment was down to the news that the retail sales had improved through July and this saw spending move back to levels seen before the pandemic.