It was another slow day for the Pound on Tuesday as investors continued to remain restrained as they await the budget announcement which takes place today.
The Furlough Scheme is likely to be extended although an increase in tax is a concern for analysts and investors alike. The Office for Budget Responsibility is also releasing its latest economic forecasts and any upbeat outlook should boost the currency. At the end of trading yesterday, the Pound finished the day at 1.1546 against the Euro and 1.3954 against the US Dollar according to the Foreign Exchange Market.
Much of the data released from the Eurozone yesterday left the Euro slightly muted as a drop in German retail sales caused the first issue of the day. Following this was news that the latest CPI release indicated that inflation has stalled in the Eurozone. The latest Eurozone services PMI are the next set of figures that are going to dictate the movement in the single currency.
The Dollar nudged lower yesterday as US Treasury yield dropped, undermining the currency. An increase in equity markets weighed on the US Dollar as a result of investors choosing to ignore warnings coming from China that the financial markets are currently in a bubble.