Home Daily Commentaries GBP gains ground on the USD

GBP gains ground on the USD

Daily Currency Update

The pound gained more ground against the US dollar after concerns around the US debt ceiling have been lifted and risk sentiment across currency markets has improved alongside commentary by Fed officials of a possible pause in the June meeting to acquire more data to generate a clearer picture of the US economy.

A more optimistic Bank of England is now expected to raise its interest rates again later this month due to higher-than-expected UK inflation in its latest reading.

Key Movers

The US dollar headed for its largest weekly fall since mid-January on Friday as the view took hold among investors that the Federal Reserve will pause its interest rate increase this month.

The US Senate's passage of a bill to suspend the debt ceiling and avert a disastrous default also removed a pillar of support for the US dollar, which had been a key beneficiary because of its safe-haven status.

Expected Ranges

  • GBP/USD: 1.2505 - 2.2595 ▲
  • GBP/EUR: 1.1605 - 1.1685 ▲
  • EUR/USD: 1.0735 - 1.0805 ▲