Pound (£)

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.

Euro (€)

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.

Dollar ($)

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.