DAILY MARKET NEWS: A Mixed Day For the US Dollar But a Strong Day For The Pound
There was an element of optimism surrounding the Pound through Tuesday after Boris Johnson suggested that a Brexit deal could be reached by next month. Despite the news that there had been as many as 600,000 jobs lost during the Covid-19 pandemic, it did improve against the Euro as it ended the day at 1.1161. However, it did lose some ground against the US Dollar according to the Foreign Exchange market as it dropped to 1.2567. However, today is likely to be a different day for the currency as the CPI figures are likely to have an impact on its performance.
The Euro lost some momentum on Tuesday despite the news that the latest ZEW surveys indicate that economic sentiment had improved in Germany, as well as in many other countries throughout Europe. However, the single currency is not likely to make any progress today as the CPI figures are likely to indicate that there was some contraction in the bloc last month.
After the news that US retail sales were up, the US Dollar strengthened through Tuesday but those gains were short-lived. This was down to the fact that it is still unclear when and how strong the recovery of the US economy will be. Therefore, any movement in the US Dollar today is likely to be dictated by market sentiment.