Tuesday saw the Pound begin with a strong rally after the latest manufacturing PMI for the UK came in above expectations.
Despite this, these gains were limited after the currency suffered from concerns surrounding the latest Scottish Parliamentary elections, pushing rates back down. At the end of the day, the currency finished at 1.1561 against the Euro and 1.3892 against the US Dollar according to the Foreign Exchange Market. It’s likely that the Pound is going to remain quite muted today as investors wait on the latest rate decision from the Bank of England.
The Euro had a quiet day on Tuesday after there was limited data released to help push it in an upwards direction. Instead, the currency was driven by the negative correlation with the US Dollar, causing it to take a defensive stance. The latest services PMI will be the main focus for investors today.
The US Dollar moved higher yesterday during the European trading session as a drop in equity markets created a risk-off mood that helped to strengthen the currency. These hopes were also bolstered by the likelihood that the US economy is going to make a swift recovery this year.