The Euro and Pound have received backing at crucial levels, signaling a potential shift in the currency market. The Euro has been trading at a key support level of 1.17 against the US dollar, while the Pound has been hovering around the 1.38 level. Both currencies have been under pressure due to the ongoing pandemic and Brexit uncertainty, but recent developments have given investors reason to be optimistic.
The Euro has been supported by the European Central Bank’s (ECB) decision to maintain its accommodative monetary policy. The ECB has pledged to keep interest rates at record lows and continue its bond-buying program until inflation reaches its target of 2%. This has helped to ease concerns about the economic impact of the pandemic and has boosted investor confidence in the Eurozone.
Meanwhile, the Pound has been buoyed by the UK’s successful vaccination rollout and the prospect of a post-Brexit trade deal with the EU. The UK has vaccinated over 30 million people, which has led to a significant drop in Covid-19 cases and deaths. This has raised hopes that the UK economy will recover quickly, which has boosted the Pound.
In addition, the UK and EU have agreed to a temporary extension of the Northern Ireland Protocol, which has eased concerns about a potential trade war between the two sides. This has also boosted investor confidence in the Pound and has helped to support its recent gains.
Overall, the Euro and Pound have received backing at crucial levels, which could signal a potential shift in the currency market. While there are still risks and uncertainties ahead, such as the ongoing pandemic and Brexit negotiations, the recent developments have given investors reason to be optimistic about the future of these currencies.
