Pound Overcomes Three-Month Lows As Fresh Hope Of Economic Recovery Offers a Boost
It was a slow start for the Pound on Tuesday as the currency was impacted by the news that the UK economic growth for the first quarter had been revised to -2.2% down from 2%. However, it did make up some ground throughout the day after Boris Johnson announced the UK recovery plan after the pandemic is designed to deal with the economic problems the country has been facing for some time. As a result, the foreign exchange market indicated that the pound finished the day at 1.1031 against the Euro and 1.2393 against the US Dollar.
The latest CPI figures from the Eurozone bolstered the Euro, sending the single currency higher on Tuesday. It indicated that inflation rose to 0.3% in June which was an increase on the forecast of 0.1%. This boosted optimism that the Eurozone economy is recovering and heading in the right direction.
The US Dollar was still influenced by Coronavirus concerns as cases are still increasing and so, investors flocked to the safe-haven currency. As more states went back into lockdown, there are fears that the US is going to suffer even further damage to its economy, which means that the second half of the year may not see much in the way of positive news.