During the London trade on Thursday, the Pound Sterling lost ground against its US rival as a result of a number of factors. On the home front, those factors include the expected long-term repercussions to the British economy as a result of the Covid-19 pandemic; yesterday, the line up of speakers from the Bank of England left markets in distress with news that the pandemic has permanently damaged economic output by nearly 1.5%. The absence of progress in the Brexit negotiations is also a concern, with EU officials pointing out that Britain has refused to budge from key sticking points. The Pound is also coming against a Dollar that appears to be growing in strength, though whether it will endure remains to be seen.
As of 11:15 am, the GBP/USD was trading at $1.3284, down 0.4824% and off the session trough of $1.32720. The EUR/GBP was higher at 0.8897 Pence, a gain of 0.24%; the pair has ranged from a low of 0.88654 Pence to a high of 0.89085 Pence. The GBP/JPY was also down at 141.276 Yen, a loss of 0.3126% and off the session trough of 141.070 Yen.
Euro's Swift Rise a Worry to ECB
The Dollar is also gaining ground on the Euro, with FX players anxious that the European Central Bank might perceive the Euro to be appreciating too much and, as a result, will make an effort to modify policy. Earlier this week, the EUR/USD hit the $1.20 price level. ECB officials have cautioned that a too-strong Euro are likely to weigh on exports which, in turn, could drag down prices. Analysts believe that the ECB won't officially or hastily act, but will likely use rhetoric in an attempt to keep the Euro's price from climbing. The EUR/USD is currently trading at $1.1817, down 0.3088%.