The Pound has weakened overnight against both the Euro and the Dollar. The market is taking a more cautious approach with the Budget being announced next week. In addition, some analysts believe that the Bank of England may extend its bond-purchase programme which has also exerted some downward pressure on the Pound.
The Euro remains largely the same against the Dollar but has benefitted against a weaker Pound. This morning, French consumer spending and preliminary GDP for Q4 2020 came out worse than expected whilst French consumer price index inflation surprised the market.
The Dollar has made some gains which is largely due to increasing US Treasury bond yields which is attracting investors. However, a combination of progress on the vaccine front plus the anticipated $1.9tn fiscal package in the US still means that the Dollar is susceptible to weakening again.