There was little movement for the Pound on Friday although some gains were made against the Euro and the US Dollar with rates of 1.0957 and 1.2745 according to the Foreign Exchange Market. While the news of further help from the government coming in the form of the Winter Economy Plan, many investors were concerned that this did not go far enough to help businesses. However, further pressure was placed on the currency after it was announced that record borrowing had reached over 100% of UK GDP.
There was also a lot of pressure on the Euro on Friday after it fell against the Pound, while increasing coronavirus cases resulted in further fear that the economy is going to slow down again. With restrictions tightening in Spain, France and Holland, it’s looking as though the future is going to be slightly bumpy for the single currency.
USD exchange rates were supported by investors seeking safety in the currency, helping it to tick higher. Even the weaker-than-expected US durable goods orders could not hold investors back from investing in the safe-haven currency. It’s likely that the US Dollar will be driven further through trading today as market sentiment will be boosted from an increase in Chinese industrial profits.