The Pound has strengthened in the last 24 hours as Bank of England Governor Bailey downplayed negative interest rates being introduced in the near future calling them ‘controversial’. He also mentioned that the central bank will wait for economic data to be released to see how the economy is coping with Brexit and a third lockdown before taking action.

The Euro has lost ground against a stronger Pound but has performed well in comparison to the Dollar. German health minister Spahn has said that it won’t be possible to lift all lockdown restrictions in February with rumours that they could keep tighter restrictions until March or April.

The Dollar has weakened with the market expecting an increase in US fiscal spending this year whilst coronavirus vaccines continue to be rolled out. Several FOMC members have suggested that the Federal Reserve’s monetary policy stance will not be eased and will stay accommodative for a while which also weighed on the greenback.