It was a day of highs and lows for the Pound during trading on Thursday following a number of announcements relating to Brexit, causing the currency to move significantly against the Euro and US Dollar. Initially, there was a large dip in exchange rates following legal action being launched formally against the UK, but it soon bounced back after news that a post-Brexit trade deal was close. A mixed day saw the Pound finish the day at 1.0974 against the Euro and 1.2888 against the USD, according to the Foreign Exchange Market, showing that the currency did eventually lose some ground.
The Euro was range bound on Thursday after unemployment increased to 8.1% during August. This caused any gains to be lost but today could prove to be a test for the single currency as the Eurozone’s Consumer price index is likely to show another month of deflation during September.
With fresh hope of a new US stimulus package, investors choose to limit their demand in the US Dollar while the latest ISM manufacturing PMI also showed that US factory activity had dropped during September. However, the news that Donald Trump has tested positive for coronavirus could see investors support the safe-haven currency.