Daily Currency Update

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UK Brexit Bill

GBP - British Pound

The UK and EU are back on a Brexit disagreement again, as they struggle to land on common ground regarding the Northern Ireland protocol and fishing issues.

It has also been reported that the EU has suggested that the UK is obliged to pay £40.8bn as part of its post-Brexit arrangements. Brussels has claimed that the bill could be higher than Britain’s estimates, meaning the UK could try to negotiate such a cost. The bill has not yet been approved by EU auditors; however, the cost may be unlikely to change without UK backlash. The effect these reports have had on sterling have been small, as nothing official has been released yet, but as we have seen in the past, Brexit roadblocks can lead to a slip in GBP.

Key Movers

The US dollar continues to outperform other major peers, including the euro and sterling. Due to the success of the vaccine rollout in the US, the currency continues to outperform markets that are being anchored due to Delta variant breakouts. Federal Reserve official, Mary Daly, has warned that the spread of the Delta coronavirus variant and low vaccination rates poses a large threat to global recovery, and she urged caution when removing a monetary safety net for the US economy. Christine Lagarde, president of the ECB is scheduled to speak at 11am.

Expected Ranges

GBP/USD: 1.37-1.3910 ▲

GBP/EUR: 1.1580-1.1740 ▲

GBP/AUD: 1.8470-1.8660 ▲

GBP/CAD: 1.7170-1.7340 ▲