The ongoing uncertainty surrounding a Brexit trade deal placed a lot of pressure on the Pound during trading on Tuesday. Despite Boris Johnson claiming that it was looking difficult, the currency managed to recover these losses following news that an agreement was made on the introduction of the Brexit Withdrawal Agreements. The currency is still looking volatile as a result of Brexit but it finished off trading at 1.1037 against the Euro and 1.33 against the US Dollar according to the Foreign Exchange Market.
Movement in the Euro was narrow on Tuesday after the Eurozone GDP reading was weaker than expected with it being reduced from 12.6% to 12.5%. However, in contrast to this, the latest ZEW survey helped to reduce any losses as it reported that economic sentiment in Germany experienced improvements this month.
As a result of a fall in the equity markets, the US Dollar saw some moderate gains during trading although they were short-lived. This was down to the NFIB Business Optimism Index showing that business morale had deteriorated last month. However, increasing coronavirus cases and the JOLT’s job opening figures, the direction of the US Dollar today is going to be watched eagerly by investors.
- GDP Figures Suggest the Pound Could Face Challenges - 18 January 2021
- Pound Strengthens Against Both the Euro and the US Dollar - 15 January 2021
- Coronavirus Figures Leaves the Pound and Euro Struggling - 14 January 2021