Tuesday saw the Pound grow stronger as rates increased against many of its peers after there was fresh hope of a UK-EU Brexit deal likely this year. This saw the currency end the day at 1.103 against the Euro and 1.298 against the US Dollar according to the Foreign Exchange market. There was also news that the retail sector is now heading towards similar levels seen before the pandemic and that also helped to boost the Pound. There are signs that the UK is recovering quicker than expected and that could push the pound higher again.
While the Euro lost some ground to the Pound on Tuesday, it held firm against many other currencies. This might have been down to the fact that Spanish unemployment figures reach a two-year high. Today, consumer confidence data in France could indicate that the Eurozone is experiencing a strong recovery and that could help the Euro gain some ground.
The US Dollar did claw back some of its losses yesterday but there are signs that this could be the worst month seen in almost ten years. The US Dollar might be boosted by the interest rate decision due today although the Federal Reserve is likely to put a hold on any changes.