Friday saw the Pound continuing to fall back following investors checking in their profits at the end of the month. However, it has also been noted that this correction of GBP exchange rates could be the beginning.
It’s going to be an interesting week for the Pound as Chancellor Rishi Sunak publishes his budget while the vaccination continues to roll on at pace. However, at the end of Friday, the currency finished the day at 1.1540 against the Euro and 1.3991 against the US Dollar according to the Foreign Exchange Market.
The Euro also struggled on Friday as its negative correlation with the US Dollar started to wane on the back of a strengthening US Dollar. Demand for the single currency was also limited because of the ongoing lack of urgency with the vaccine rollout. The German consumer price index is going to be in the spotlight today as inflation last month could be enough to bolster the Euro.
The US Dollar had a good start to the day on Friday after market sentiment took a downturn but this was limited as strong US consumer data indicated that spending had improved, leaving the Greenback on the back foot.