Wednesday saw the Pound move at a fairly subdued pace as concerns started to mount over the risk of a second wave of coronavirus infections. Therefore, the currency finished the day at 1.1034 against the Euro and 1.2414 against the US Dollar, with the foreign exchange market indicating that the currency had lost ground against both currencies when compared to the previous day. Investors took a step back from showing an interest as there is a real risk of the economy being locked down again if cases increase again.
The Euro was dampened by news that the US was considering implementing tariffs against the EU, causing investors to retreat, despite news that business sentiment in Germany had improved through the month of June. It’s likely to be another quiet day again for the single currency as investors wait for further details on the US tariffs.
It was a better day for the US Dollar on Wednesday as goods data saw orders for goods increase during May, proving that the economy was beginning to pick up some sort of pace. However, the risk of an EU-US trade war, as well as worries that Coronavirus could spread again, resulted in investors taking safety in the Greenback