The Dollar made small gains yesterday, for the first in five sessions, but has more than given up those gains today. Most major currencies, including the Euro, have appreciated slightly versus the Dollar. The EUR/USD cross, which had yesterday dipped below 1.14, is today back to a multi-month high of about 1.144. The backdrop is the special EU Summit on a €75bn European recovery fund which started today and is due to finish over the weekend.
The exception has been Sterling which is trading flat to the Dollar around 1.2550. As a result, the GBP/EUR cross has fallen below the 1.10 level for the first time since late-June. Markets have seemingly discounted positive noises from British Prime Minister Johnson and Bank of England governor Bailey about the economy gradually be re-opened and returning to normal.