The Pound performed well yesterday across the board but has weakened back below key technical levels. Prime Minister Johnson will travel to Scotland today to call on the UK to work together during the pandemic after Scotland’s First Minister Sturgeon suggested a second independence referendum could happen.
Yesterday, the Euro lost some strength as reports surfaced suggesting that ECB officials believe the possibility of an interest rate cut in the Eurozone is being underestimated by the market. German preliminary consumer price index inflation data is due later today which will be closely watched by the market.
The Dollar has strengthened against both the Euro and the Pound after Federal Reserve Chairman Powell suggested that the central bank is still ‘a long way from meeting inflation and employment goals’. The market took a risk-off approach which increased demand for the Dollar.