There were some modest gains for the Pound on Tuesday as the success of the vaccination programme continued and investors took interest in the reopening of the economy, giving the currency a boost.
Despite this, investors are still reluctant to commit to the Pound as they monitor the latest coronavirus developments in Europe. The latest GDP figures might help to support the Pound today but it finished Tuesday at 1.1725 against the Euro and 1.374 against the US Dollar according to the Foreign Exchange Market.
The Euro took a defensive stance yesterday with concerns growing over coronavirus cases as the vaccine programme continues to amble on. This even offset news of inflation in Germany as seen in the latest consumer price index although investors will be watching the Eurozone’s CPI results today.
The US Dollar continued to rise in line with US treasury yield and this increase came among strong expectations of an economic recovery in the US. This was also bolstered by news that President Biden has new infrastructure plans worth $3 trillion and will place a focus on investing in green energy.