European Covid Restrictions Hamper Euro
The Pound to Euro exchange rate firms around the 1.19 level and looks set to edge towards the big round number of 1.20 over the course of coming days, aided by positive technical momentum and deteriorating sentiment towards the Eurozone.
The Euro has lost a percent of its value to Pound Sterling over the course of the past week amidst the reintroduction of Covid restrictions.
EUR/USD preserves its recovery momentum in the early European session on Tuesday and trades above 1.1260 supported by the upbeat PMI data from Germany and EU, which showed ongoing expansion in the service and manufacturing sectors’ business activity.
GBP/USD is trading below 1.3400, with a small drop in the market yesterday, as they remain cautious amid Fed’s tapering bets, looming covid and Brexit concerns.