Daily Currency Update

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BoE leave policy unchanged

GBP - British Pound

The BoE released their meeting minutes on Thursday, as they decided unanimously, to leave monetary policy unchanged. They went on to claim that ‘the Committee does not intend to tighten monetary policy, at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.’ This suggests that much like the Fed, it will likely be at least Q2 2022 before we see a hike. GBP retraced slightly on the back of the news.
In other GBP related news, it is being reported that there has been a hold up of the AstraZeneca vaccine in India, however Matt Hancock has stated that this will not affect vaccine distribution and that second doses will still be administered 12 weeks after the first.

Key Movers

In what seems to be a U-turn from the European Medical council, the ban on the AstraZeneca vaccine has been lifted. They now agree the vaccine is safe to use and will be distributed amongst the bloc. This will likely ease the struggling Euro, which has been anchored recently due to their pandemic response.
The US Dollar erased its losses from the FOMC, as US treasury yields continue to spike. The Philly index reading came out at 58.8, up from 23.3, which is the best reading in 48 years. This suggests that the US economy is rapidly picking up on the back of vaccine distribution and improved global risk appetite.

Expected Ranges

GBP/USD: 1.3870-1.4060 ▲

GBP/EUR: 1.1625-1.1795 ▲

GBP/AUD: 1.7860-1.8050 ▲

GBP/CAD: 1.7300-1.7520 ▲