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Pound losing ground against the US dollar

Daily Currency Update

GBP remains well supported by its vaccination effort, economic performance, and hope that the UK Health Secretary, Sajid Javid, will stick with the target date of July 19 for ending restrictions. This sentiment was echoed by Prime Minister Boris Johnson, as he also stated that Britain is on course to stick to the new plan of restrictions being lifted, and this news could be positive for GBP.

Key Movers

The European Central Bank's Robert Holzmann yesterday said, “there is no room to increase rates given weak inflation” and added that the pandemic emergency purchase program will end once the COVID-19 emergency is over. This is consistent with the ECB messaging of late, with September being the next key time frame in which the market can expect a new announcement from the ECB. Historically, a conservative stance has sometimes negatively impacted the euro, but the euro has been trading flat against the US dollar and the pound for the past few days.

Expected Ranges

  • GBP/USD: 1.3830 - 1.3865 ▼
  • GBP/EUR: 1.1615 - 1.1645 ▼
  • EUR/USD: 1.1885 - 1.1915 ▼