It was a mixed day for the Pound on Monday after it reached a new three-week high against the US dollar of 1.2991 while there wasn’t much movement in the Euro rate, finishing the day at 1.1021 according to the Foreign Exchange Market. Despite the improvements in September’s services PMI, the pound struggled and further job losses also put a cap on any gains. Once again, Brexit is going to be a key influence on the currency through trading while some support could come from September’s construction PMI.
Retail figures for the Eurozone during August were higher than anticipated and that caused the Euro to strengthen during trading. Market sentiment also improved while the negative correlation to USD also helped to boost the single currency. The European Central Bank will be making a speech and it could touch on additional monetary easing in order to help manage the problem of deflation.
As Donald Trump was released from hospital, the US Dollar took a tumble, losing any gains it had made from the demand it experienced when market sentiment improved. The strong ISM Non-manufacturing PMI that was seen during September was offset as a result although the recovery of President Trump is still going to be the main focus for investors through trading today.