The pound took advantage of its weaker peers during early trading on Monday and this helped to set it off on the right foot for the new week. However, what is causing problems for the currency is the fact that unemployment figures are worryingly high for the UK. Along with this, the most recent wage growth figures indicate that wages declined by 0.2% during the month of June for the first time since 2001 and that is going to have an impact on the Pound. As trading came to a close, the foreign exchange market showed that the Pound finished the day at 1.1134 against the Euro and 1.3074 against the US Dollar.
It was a challenging day for the Euro on Monday as it found itself on the back foot after investors showed concerns for increasing coronavirus cases throughout Europe. However, Germany experienced an unexpected increase in economic sentiment and that will give investors some form of encouragement.
The US Dollar experienced a mixed day during trading as market sentiment improved even though tensions between the US and China were rising. However, job opportunities reached a three month high in June helping to stop the US Dollar from sliding further. The next round of US stimulus is likely to be the next focus for investors as any form of deal could mean that the US Dollar will strengthen.