Euro and pound sterling trading tried to defend its position against the US dollar on Tuesday as concerns over a new variant of coronavirus in the UK continued to depress market sentiment today.
The World Health Organization (WHO) statement that the latest virus mutations detected in the UK are under control and can be curbed with existing health measures, initially providing relief to the market.
However, after the market assesses the impact of tighter restrictions and the aviation system affected by the closure of borders by some countries from the UK, the market is worried about the global economic recovery.
This caused the major currencies today to continue trading under pressure.
However, talks between the French and British governments to reopen their borders, where hundreds of trucks have been stranded and reports showing progress in the Brexit trade negotiations helped ease pressure on the two currencies.
Also in support of this currency trading was the approval of the US stimulus package by Congress, although at first they failed to react to this news.
As the European session began, the euro depreciated 0.18% at 1.22000 while the pound fell 0.2% at 1.34300 against the US dollar, recovering from 2.5% in the previous trading session.
The pound sterling has also been shown to release stronger-than-expected UK economic data in the third quarter, providing some support for cable.
UK Prime Minister Boris Johnson and French President Emmanuel Macron reportedly agreed to allow the movement of goods between them again after Paris' decision to close the border caused great disruption.
