Daily Currency Update

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Pound struggles in absence of economic data

GBP - British Pound

The pound found limited gains against the US dollar throughout the day on Wednesday, as an absence of economic data from the UK did little to support Sterling's recovery.

The UK’s economic recovery from the pandemic remains a concern as COVID-19 cases in the UK remain high, however hospitalisations from the virus remain low due to the vaccine rollout.

COVID-19 cases continue to rise in the UK and currently stand at over 30,000 new daily cases before schools return. Fears of a surge in cases in September could weigh on the pound.

Key Movers

The US dollar strengthened against many major currencies as a more cautious market mood increased demand for the safe-haven currency, which can lead to a stronger dollar.

The dollar also found support from the latest US durable goods orders which although softened, beat market forecasts. US durable goods orders fell 0.1%, though demand remained strong despite supply-chain issues.

The markets today will be keeping a close eye on the Jackson Hole Symposium and the second reading of the US second quarter GDP figures - a better than expected outcome could support the dollar’s recovery from its recent losses.

Expected Ranges

GBP/USD: 1.3715 - 1.3765 ▼

GBP/EUR: 1.1665 - 1.1695 ▲

EUR/USD: 1.1725 - 1.1775 ▼

GBP/AUD: 1.8915 - 1.9015 ▲