Sterling sentiment was dampened on Wednesday after news that a Brexit trade deal is unlikely to be reached by the deadline of the 15th November. As a result, the Pound to US Dollar as well as the Pound to Euro rates both slipped back to 1.3225 and 1.1225 respectively according to the Foreign Exchange Market. However, these losses were limited by the renewed optimism of a coronavirus vaccine. Despite this, news that the UK economy has bounced back from recession will be a welcome boost for the currency.
It was a day on the defensive for the Euro after the single currency had to deal with the impact of rising coronavirus cases and new lockdown restrictions. With Italy likely to be the next country to go into lockdown, it’s likely that the single currency will be impacted. Despite this, the Euro to Pound rate has strengthened today on the back of the latest Brexit news.
Despite the ongoing political uncertainty, the US Dollar moved higher through trading on Wednesday. With demand for the Greenback increasing following the reluctance of Donald Trump to give up his post, the US Dollar also strengthened against the Pound as the rate dropped by the end of the day.