Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools.

Strong finish for Sterling in July

GBP - British Pound

The pound rose 0.5% against the dollar to a monthly high $1.3980 yesterday, lifted by the continued drop in Covid-19 cases over the past week and Wednesday's comments from US Federal Reserve chair Jerome Powell. Yesterday a bank of England report showed that mortgage lending surged to a record high of nearly £18bn in June, as many home-buyers rushed to take advantage of a tax break before it was scaled back, which only adds to the positive sentiment surrounding sterling this week.

There was little movement for GBPEUR yesterday trading in a narrow 25 pip range in the mid 1.17s.

Key Movers

Yesterday saw the release of US second quarter GDP data, which showed the US economy grew at an annualised rate of 6.5%, similar to the first quarter’s 6.4% growth rate. The figure isn't the worst but it did disappoint against the forecasts which expected a faster expansion of 8.5%.

In Germany, unemployment fell to 5.7% as companies hired more workers in July. At the same time, inflation rose to 3.1%.

Expected Ranges

GBP/USD: 1.3920 - 1.3995 ▲

GBP/EUR: 1.1705 - 1.1785 ▲

GBP/AUD: 1.8850 - 1.8950 ▲

EUR/USD: 1.1850 - 1.1950 ▲