At the end of last week, the Pound gathered plenty of support following comments from the Bank of England.
Furthermore, it was boosted by news from the Business Secretary who claims that there is nothing to suggest that the easing of restrictions would be delayed. As the Pound strengthened and the US Dollar weakened, the pound to US Dollar rate reached a three year high of 1.4203. The currency also reached 1.1638 against the Euro according to the Foreign Exchange Market.
On Friday, the Euro edged lower as it grappled with the negative correlation with the US Dollar. Despite this, the currency managed to limit its losses as the economic outlook across the bloc continues to improve as economic sentiment reached a new three year high.
The US Dollar fluctuated on Friday as solid US economic data helped to provide some support for the currency. The latest PCE price index impressed USD investors as the Federal Reserve’s preferred measure of inflation came in above expectations during April. Today, the latest ISM manufacturing PMI is likely to give the currency a boost as the US factory sector is likely to have grown during May.