EUR/USD trades below 1.1100, as the U.S. Dollar rebounds. The pair increased by 4.27% last week, closing its best week in over ten years on Friday, after a broad decline in the USD, making breathing room for other major currencies. U.S. President Donald Trump’s decision to extend lockdown to battle the coronavirus pandemic increased risks of a sharper downturn in the economy. 

The Pound-Dollar exchange rate extended losses towards the 1.2300 mark, as the U.S. Dollar gained momentum in Europe. The pair was trading at 1.2455, going up +7.4% last week, closing its largest weekly winnings in more than 10 years on Friday. 

The Cable also closed its best week since September 2017 on Friday, trading at 1.1174 and up +2.59%. Analysis of the charts indicates that a consolidation period is now likely, although the exact course of the exchange rate will be established in the coming weeks, depending on investor appetite.

The South African Rand experienced heavy losses before to the weekend cut off, and is forecast to see a further wave of selling early in the new week, as investors react to Moody’s decision to cut South Africa’s credit rating to ‘junk’, potentially increasing the Pound-to-Rand rate to fresh multi-year highs.