Daily Currency Update

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UK Economy Recovering

GBP - British Pound

GBP/USD pushed higher on Friday, going from session lows of 1.3760 seen on Thursday, up to around 1.3900 by the close of the day. Bank of England Governor, Andrew Bailey, stated that the “economy is bouncing back rapidly” which could have impacted the pound, as well as UK data releases.

Today the UK is due to be informed of what the new COVID-19 guidance, coming in next Monday, could be. Regardless of cases still rising, PM Boris Johnson could state that most remaining restrictions will be lifted next week. The pound may not be impacted by this news, as it is thought to be priced into the market already. The pound could be sensitive to unemployment and inflation data releases later in the week.

Key Movers

Today there is a lack of key economic data releases that could trigger significant market movement for the dollar. Later in the week inflation data will be announced. Also, Federal Reserve Chairman, Jerome Powell, is due to testify in congress on Wednesday and Thursday, potentially providing us with clues on the central bank’s current thinking over tapering of asset purchases.

EUR/USD continues to be impacted by global events such as the pandemic and dollar pressures. ECB President, Lagarde, stated that the policy meeting on 22nd July might shed some light on stimulus guidance and additional measures for monetary support in the year to come. The euro remained largely unchanged after this, and the EUR/USD pair found some support around the 1.1800 handle.

Expected Ranges

GBP/USD: 1.3760 - 1.3900 ▼

GBP/EUR: 1.1610 - 1.1715 ▲

GBP/AUD: 1.8485 - 1.8600 ▼

EUR/USD: 1.1780 - 1.1880 ▼