Daily Currency Update

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Three month low for EUR/USD

GBP - British Pound

Sterling outperformed most major currencies on Monday, after PM Boris Johnson’s speech about lifting COVID-19 restrictions left traders with a positive tone for the pound. The pound’s retrace came shortly after, as Brexit woes and the Bank of England’s rhetoric around the lack of impact that the reopening could have on the economy is anchoring the pound.

The Delta variant continues to spread across Europe, and Sajid Javid suggests that cases could soon rise above 100,000 per day, however, stands by Johnson’s claim that lifting restrictions on July 19th is the correct call. Sterling’s next market moving action could come on Friday in the form of Andrew Bailey’s speech, governor of the Bank of England.

Key Movers

The Eurozone ZEW surveys disappointed high expectations, posting a reading of 63.4 against an estimated 75.2. The disappointing data in Europe sent the euro to a three-month low against the US dollar. The US dollar has showed consistent strength over the past few weeks. However, these gains may be eradicated if weaker than expected US data is posted, or the US Federal Reserve lower their economic forecast positions.

Expected Ranges

GBP/USD: 1.3695-1.3915 ▼

GBP/EUR: 1.1575-1.1780 ▼

GBP/CAD: 1.7085-1.7260 ▼

GBP/AUD: 1.8250-1.8520 ▼