Daily Currency Update

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Risk-on sentiment pushes US dollar lower

GBP - British Pound

Sterling continued to test yearly highs on Monday and Tuesday morning against the US dollar, breaking above the 1.42 handle. The move was supported by the continual risk-on sentiment in financial markets, which in particular is weighing on the dollar. The continued improvements we have seen in UK economic data, combined with the well-run vaccination program have kept Sterling well supported in recent weeks.

GBPEUR has continued to trade sideways between 1.1550 – 1.1650, with the pair struggling to take direction between this range.

In a boost for Boris Johnson's lockdown easing schedule, it has been reported that the Pfizer and AstraZeneca vaccines are both effective against the new Indian variant of COVID-19.

Key Movers

The euro continues to outperform it's major peers. Over the past week the euro has outperformed every G10 currency bar the Swiss Franc. The reason for this move can be attributed to the ever improving vaccine rollout, which is leading to the easing of lockdowns and an improvement in Eurozone economic data. In particular EURUSD is continuing to trade above the 1.22 handle, it’s highest level this year.

The pressure on the US dollar has continued this week, with the currency trading lower against most of its major peers.

Expected Ranges

GBP/USD: 1.4150 - 1.4230 ▲

GBP/EUR: 1.1550 - 1.1640 ▼

GBP/AUD: 1.8210 - 1.8330 ▼

EUR/USD: 1.2180 - 1.2290 ▲