The Pound edged higher on Tuesday with news that it could be as early as next week when a post-Brexit trade deal could be signed off. Investors were boosted with the news although the gains seen were relatively subdued as fishing rights and the differences between the UK and EU left them feeling cautious. Further gains could be seen today with the UK’s consumer price index being published. However, as trading closed yesterday the currency finished the day at 1.1174 against the Euro and 1.3256 against the US Dollar according to the Foreign Exchange Market.
Tuesday saw the Euro also make some modest gains as it took advantage of the negative correlation against the US Dollar. These gains were limited as coronavirus cases continued to rise and the news of a vaccine took a back seat as hospitals in certain countries claimed to be in a perilous position. Further pressure could be seen today with the latest CPI release.
There was very little in the way of support for the US Dollar yesterday as some states implemented more restrictions to help battle rising coronavirus cases. The US retail sales figures also disappointed with the 0.3% expansion coming in under expectations, leaving the Greenback on the back foot.