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Pound Boosted by Improved Market Mood

Pound Boosted by Improved Market Mood

The Pound had a strong start to the week against the Euro and Dollar as market mood improved throughout Monday.

On the Dollar side, the US currency drifted lower yesterday as demand for the safe-haven currency was lessened by an improving market mood.

The Euro also weakened yesterday following a report from Germany’s central bank that German economic growth is likely to miss its initial forecasts this year as a result of the pandemic.

In the Eurozone, the PMI data was little changed from July, indicating the economy maintained its momentum in August. Elsewhere, consumer confidence (August) declined for the second consecutive month, falling to –5.3 from -4.4, and below the consensus of -5.0. Overall, the Eurozone survey data indicate the economy continues to perform strongly so far in Q3.

In level terms, the firmer tone to sterling is reflected in EUR/GBP opening this morning back down below the midpoint of 85-86p. Cable (GBP/USD) starts today just shy of the halfway mark of $1.37 -1.38. Meanwhile, EUR/USD continues to change hands in the $1.17-1.18 corridor.

 

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