DAILY MARKET NEWS: GBP to USD Rate Soars Past 1.31
The Pound pushed higher on Thursday, going beyond the 1.31 mark against the US Dollar while it also improved against the Euro finishing at 1.1119 according to the Foreign Exchange Market. After the Bank of England announced that they would be injecting ￡150bn into the economy, the currency gathered momentum. The injection was higher than expected and they also kept any news of negative interest rates at bay, helping to strengthen the Pound.
The Euro came out on top against the US Dollar with the rate hitting a two-week high although it did struggle against other currencies. However, investors were concerned by news that retail sales did not perform as well as expected and German factory orders also fell, proving that the economy in the Eurozone is not likely to recover any time soon. Despite this, it was offset this morning by news that German factory output had expanded for five months in a row creating a glimmer of hope.
After it became clear that Joe Biden is likely to win the election, the US Dollar took a fall after its appeal dampened. Once again, the Federal Reserve also left its monetary policy unaltered and sent out a warning that the slow pace of recovery was failing to inspire the Greenback.