Daily Currency Update

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Pound losing ground against the US dollar

GBP - British Pound

The pound is down for the fourth straight day against the US dollar as the number of COVID-19 cases in the UK keeps rising. Yesterday saw a further 22,868 new COVID-19 cases, the largest one day increase that we have seen in five months.

GBP remains well supported by its vaccination effort, economic performance, and hope that the UK Health Secretary, Sajid Javid, will stick with the target date of July 19 for ending restrictions. This sentiment was echoed by Prime Minister Boris Johnson, as he also stated that Britain is on course to stick to the new plan of restrictions being lifted, and this news could be positive for GBP.

Key Movers

The European Central Bank's Robert Holzmann yesterday said, “there is no room to increase rates given weak inflation” and added that the pandemic emergency purchase program will end once the COVID-19 emergency is over. This is consistent with the ECB messaging of late, with September being the next key time frame in which the market can expect a new announcement from the ECB. Historically, a conservative stance has sometimes negatively impacted the euro, but the euro has been trading flat against the US dollar and the pound for the past few days.

Expected Ranges

GBP/USD: 1.3830 - 1.3865 ▼

GBP/EUR: 1.1615 - 1.1645 ▼

EUR/USD: 1.1885 - 1.1915 ▼