On Wednesday, it looked as though the Pound’s current run could be easing off. The Bank of England might have played a role in this as recent comments claimed that the recent increase in GBP exchange rates could have a depressive effect on inflation.
Despite this, the currency did finish the day at €1.1624 against the Euro and $1.4141 against the US Dollar according to the Foreign Exchange Market. However, it does look as though the ongoing vaccine success could continue to boost the Pound through to the end of the week.
There was little movement in the Euro on Wednesday with the latest German GDP reading being revised slightly. This helped to ease the impact of the poor vaccination rollout across the Eurozone, causing concern that the economy won’t bounce back as quickly as expected. The latest EU summit is likely to discuss the vaccine rollout, so perhaps a solution will be found that could bolster the Euro.
After a sharp increase in Treasury yields, the US Dollar went on a rally. This came following improved progress on President Biden’s stimulus package, which is hoped can help to improve the economic recovery.