On Tuesday, the Pound managed to make up some ground against many of its peers.
This came after the announcement that England would be moving on with the reopening as planned. Despite this, the Bank of England did send out some warnings about the risk to the economy as businesses and families could struggle as financial support is reduced and this undermined the currency. According to the Foreign Exchange Market, the Pound finished at 1.1727 against the Euro and 1.3813 against the US Dollar.
A strong negative correlation with a strong US Dollar pushed the Euro downwards yesterday. This was also met with concerns about the spread of the Delta variant and how that could put a dent in the economic recovery across the bloc, especially with new restrictions being implemented in some countries.
The US Dollar soared yesterday, reaching a new three-month high against the Euro, with US inflation exceeding expectations. This increase in inflation is clear proof that the US economy is recovering rapidly. However, it does put pressure on the Federal Reserve to tighten monetary policy and that helped to support the Greenback yesterday.