Daily Currency Update

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Sterling rises ahead of Bank of England Meeting

GBP - British Pound

There seems to be a turn in the tide for sterling over the course of the week as GBP/USD marches back towards the 1.40 handle in the run up to the Bank of England meeting on Thursday. Traders seem to have greater expectations for this meeting, with vaccinations still progressing well and inflation just above target. If Governor Andrew Bailey provides an upbeat message for the future of the UK economy, the pound could break the $1.40 handle against the US dollar. In the meantime, we see the release of UK flash manufacturing and services PMI. The figures are expected to show an expansion in both sectors.

Key Movers

The Eurozone has posted more positive data on Wednesday morning as flash services and manufacturing PMIs came in better than expected. Both sectors showed an expansion, and the euro has benefited as a result. EUR/USD climbed by 0.3% on the news, leaving it trading just below the 1.1950 handle.

Expected Ranges

GBP/USD: 1.3880-1.4075 ▲

GBP/EUR: 1.1595-1.1825 ▲

GBP/AUD: 1.7085-1.7300 ▲

GBP/AUD: 1.8390-1.8590 ▲