The pound bounced back during trading on Wednesday finishing the day off at 1.1032 against the Euro and 1.259 against the US Dollar according to the Foreign Exchange market. The currency reacted to news that the consumer price index was better than expected. For the first time this year, inflation rose unexpectedly leaving investors hopeful that the Bank of England would avoid implementing an unfamiliar monetary policy. However, any gains made by the Pound are likely to be lost today after there was a significant drop in wage growth during May.
The Euro faced challenges on Wednesday after investors were still holding off on making any investments. As a result, the Euro suffered at the hands of its peers as they all excelled as a result of improving market sentiment. There is a rate decision to be announced today from the European Central Bank and that may influence the direction in which the Euro moves.
The positive news of a potential coronavirus vaccine meant that the US Dollar struggled through trading after the demand for the currency weakened. This meant that the US Dollar was on the back foot even though US industrial rate indicated that production had grown at a faster pace than expected.