Pound to Euro Rate Strengthens Following Bond Buying News

On Thursday, the Pound was lacking direction with its peers directing much of its movement.

Following news that the European Central Bank had plans to accelerate bond-buying and with the US Dollar suffering as a result of falling yields, the Euro rate finished at 1.1674 according and the US Dollar rate finished at 1.3987 according to the Foreign Exchange Market. The currency is still supported by the vaccine rollout and hopes that the economy will soon begin to show signs of growing again.

It was a defensive day for the Euro as the European Central Bank announced that it was ready to purchase bonds at a faster rate. With coronavirus cases increasing and lockdowns still in place, it still revised its growth forecasts higher, proving that hope is still very much bolstering the single currency.

The US Dollar fell back yesterday after another drop in US Treasury yields and optimism surrounding the stimulus package. Despite this, the losses were limited after US initial jobless claims dropped beyond the expected figures and that helped to further the optimism that surrounds an economic recovery in the US.

 

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