Pound Slows Down While US Dollar Rebounds

News that London could be placed into lockdown caused the Pound to go on the defensive during trading on Monday. As coronavirus cases grow, placing London into lockdown could have serious implications on the economy and that caused investors to reconsider their options. There was also news in the form of the latest manufacturing PMI for July indicating that UK factory activity moved at a slower rate than expected. As a result, the Pound finished the day at 1.1119 against the Euro and 1.3076 against the US Dollar according to the Foreign Exchange market.

There was not much in the way of movement for the Euro on Monday following the release of the latest Eurozone GDP figures last week. However, the Euro managed to avoid significant losses after the manufacturing PMI in the Eurozone was revised to a higher level within the final release for July.

Last week saw the US Dollar move into new territory due to hard selling but Monday saw the currency improve as investors took advantage of the greenback. This upwards momentum was backed by the ISM manufacturing PMI which saw it rise to the highest level for 16 months. US factory order figures due to be released today are likely to have an impact on its performance through Tuesday trading.

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