Depressed pound looks for lift from PMI data
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Daily Currency Update
GBP/USD continues to hover around the 1.35 handle after a relatively quiet start to the week. Last week’s government borrowing figures sent the pound lower when it was revealed the UK had to borrow £18bn to balance the books in August, a far higher figure than expected. In the absence of any top tier data sterling has managed to pare some of its losses but is still well below Thursday level versus most of its peers. GBP/EUR trades at 1.1460.Key Movers
Today brings the latest monthly health check of the eurozone, UK and the US with the latest PMI data due. The data is expected to show the eurozone’s manufacturing sector is continuing to recover from its inflation driven slump in the aftermath of the pandemic. The UK government will be hoping we see a better-than-expected services reading, given how badly growth is needed to free up the country’s finances. And Donald Trump and his team will be keenly eyeing any reason to call for lower interest rates when the US readings are released mid-afternoon. EUR/USD is just below 1.18.Expected Ranges
- GBP/USD: 1.3415 - 1.3595 ▲
- GBP/EUR: 1.1425 - 1.1510 ▲
- GBP/AUD: 2.0430 - 2.0595 ▲
- EUR/USD: 1.1730 - 1.1850 ▲