The Pound lost some ground during midweek trading on Wednesday after new concerns about a Brexit trade deal forced it to dip. The comments from the European Commission president put pressure on the currency while the 2020 Spending Review from Rishi Sunak also indicated that the economic emergency in the UK was just starting. Brexit will govern the direction of the Pound for the rest of this week, but it rounded off the day at 1.1232 against the Euro and 1.3384 against the US Dollar according to the Foreign Exchange Market.
The Euro nudged upwards yesterday after the US Dollar pulled back, despite the ongoing concerns of the situation around the Eurozone economy. It was announced that positive growth during Q4 will prove challenging while the ECB’s Financial Stability Review set out a warning stating that countries should refrain from withdrawing financial support too early.
The US Dollar did not experience a lot of movement on Wednesday following the release of economic data. There was an increase in initial jobless claims last week although the durable goods were stronger than expected although this was not enough to bolster the currency.
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