After the introduction of a new tier-based system to tackle rising coronavirus cases on Monday, the Pound to Euro rate moved to a new monthly high of 1.1059 according to the Foreign Exchange Market. The currency strengthened after it was identified that most of the UK would not succumb to the highest tier of covid restrictions. Still, the currency remained firm as it continues to improve against the US Dollar, finishing the day at 1.3066. However, the release of the latest unemployment figures released today could add some pressure to the currency.
More countries looked to implement stronger coronavirus restrictions on Monday, leaving the Euro struggling. This then caused concerns relating to the economic recovery and how they could cause the recovery to dip. However, further misery is likely to be mounted on the single currency after the latest ZEW survey showed that mood is deteriorating.
The US Dollar moved slightly higher through trading on Monday following news that the latest stimulus proposal was rejected by the Trump administration, resulting in a downturn of market mood. Despite this, the safe-haven currency didn’t take advantage of the risk appeal and so, the Pound to US Dollar rate edged higher.