The Pound edged higher on Wednesday as it was boosted by the latest GDP figures.
The latest release for the final quarter of 2020 showed that growth had been revised to 1.3% from 1% which means that the UK will not go through a double-dip recession. This improvement pushed the Pound to Euro rate to 1.1755 and the US Dollar rate rose to 1.3784 according to the Foreign Exchange Market. Today, the latest manufacturing PMI could help to bolster the currency.
It was a slow day for the Euro as the consumer price index in the Eurozone didn’t give investors much to get excited about. Even though headline inflation rose to 1.3%, core inflation dropped to 0.9% which meant that the rise was down to temporary fuel price increases. Furthermore, news that France was heading into another national lockdown didn’t help while the latest retail figures in Germany were lower than expected this morning.
The US Dollar was on the defensive for most of the day as improved risk appetite left investors looking elsewhere. However, it managed to curb the losses President Biden releases news of his latest $2 trillion infrastructure stimulus package.