Daily Currency Update

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Positive jobs data provides further support for the pound

GBP - British Pound

The pound is continuing its good form this morning making further inroads into a weak US dollar as well as the euro. Having underperformed for much of April, Sterling now looks set for a period of outperformance particularly as the country continues its vaccination rollout.

This morning there was further good news in the form of the country's latest jobs data which saw unemployment levels dropping to 4.6% in the last 6 weeks, indicating that there are green shoots in the employment market despite the furlough support scheme. GBPUSD has picked up from 1.4080 yesterday morning. GBPEUR has recovered from dipping below 1.1500 eight days ago.

Key Movers

Its further US dollar weakness that is assisting the euro and EURUSD continues to rally. The Euro has managed to weather the storm of last week's stronger US activity and economic data and the raft of Eurozone PMI information on Friday could certainly add further euro strength. For the time being EURUSD is up over 1% in the last week and 1.4% in the last month.

In the US however, the focus will be on tomorrow's Federal Reserve minutes which are due to be released in the evening. The Canadian Dollar has also benefited from its weak US counterpart and finally the low of February 2017 has been broken despite housing data missing expectations yesterday.

Expected Ranges

GBP/USD: 1.4140 - 1.4220 ▲

GBP/EUR: 1.1605 - 1.1680 ▲

GBP/AUD: 1.8120 - 1.8235 ▲

EUR/USD: 1.2070 - 1.2230 ▲