Through trading on Tuesday, the Pound experienced some selling pressure after the outlook for the second half of 2020 was beginning to look slightly concerning. The talks of a potential lockdown in London would send shockwaves through the economy causing the currency to struggle if it was to be implemented. According to the Foreign Exchange market, the currency finished the day at 1.1081 against the Euro and 1.3072 against the US Dollar. However, improvements in UK business activity might be enough to boost the pound through trading on Wednesday.
The Euro was quietly subdued on Tuesday as the negative correlation with the US Dollar saw the currency suffer somewhat. However, the Eurozone’s producer price index indicated that produce prices had made better-than-expected gains in June.
The US Dollar made improvements during trading due to uncertainty surrounding the US Fiscal stimulus package and concerns of coronavirus infections rising higher globally, causing investors to seek safety in the US Dollar. The latest US factory order figures also came in higher than expected, helping to bolster the US Dollar. The latest ISM non-manufacturing PMI is going to prove pivotal today, helping the US Dollar to recover further.