With the hopes that the UK and the EU will come to a trade deal, the Pound gathered some momentum on Tuesday as it trended higher. This optimism is still held on by a thread as there are still agreements to be reached but continuing talks are a positive sign. However, investors still have concerns over the impact of the next lockdown in the UK and how that is going to impact the currency over the next month at lease. Despite that, the pound finished the day at 1.1156 against the Euro and 1.3115 against the US Dollar according to the Foreign Exchange Market.
It was a mixed day of trading for the Euro as it struggled to obtain wider support but still powered ahead of the US Dollar. This occurred as a result of investors still concerned about the increase in coronavirus cases and the risk of further restrictions being implemented. It’s likely that the PMI figures for October are going to place additional pressure on the single currency, showing that activity has contracted.
Demand for the US Dollar resulted in it falling behind yesterday. Despite this, with the ongoing US election vote count showing that the election is tight, the US Dollar rebounded sharply and this is likely to continue through today.