Daily Currency Update

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Wait and see mode at the moment from the Pound

GBP - British Pound

The pound edged higher yesterday against both the US dollar and euro although it wasn’t all plain sailing throughout the day. Despite intra-day wobbles the pound finds itself well bid at the moment ahead of tomorrow’s Bank of England meeting. We aren’t expecting many fireworks from Andrew Bailey and his colleagues tomorrow but it will be interesting to see what the GDP forecasts look like. The UK economy has certainly benefited from the loosening of restrictions, in fact the pound has certainly benefited over the last week or so with virus rates dropping.

Key Movers

The other side of the pound’s success yesterday was from Monday’s lacklustre ISM manufacturing numbers from the States. Even though expansion was seen it was behind expectations, creating worries around the largest economy in the world. There are order backlogs and supply constraints in the US and this has weighed on the dollar since the start of the week. Later today we get a sneak preview of the US labour market with the ADP jobs report.

Expected Ranges

GBP/USD: 1.3890 - 1.3980 ▲

GBP/EUR: 1.1650 - 1.1750 ▲

GBP/AUD: 1.8760 - 1.8880 ▼

EUR/USD: 1.1850 - 1.1910 ▲
1.1900 ▲
1850 - 1.1950 ▲