DAILY MARKET NEWS: Losses for The Pound And New Concerns for the US Dollar
Figures released today indicate that UK GDP shrank by 2% when compared to the previous quarter, placing a lot of strain on the currency. Tuesday was not a good day for the Pound as it suffered losses, proving that there is a lot of uncertainty around the economy, international payments and Brexit. It was a 20 day low for the pound as the currency came in at 1.1306 against the Euro and 1.2269 against the dollar according to the foreign exchange rates.
It was different day for the Euro as it strengthened off the back of the wide sell-off of its most widely traded partner, the US Dollar, finishing the day at 1.0852 against it. Despite this, there are still concerns around the economy as businesses are beginning to open cautiously once again, although the risk of a second wave is stifling any real gains.
The US Dollar moved at a slower pace through Tuesday as it reacted to a drop in US inflation that was not expected. However, new speculation suggested that the Federal Reserve might have to slash interest rates below zero, causing concerns for investors while the outcome is likely to see the Dollar weaken further.