Daily Currency Update

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GBP USD weakens

GBP - British Pound

GBP/USD declined yesterday, which was its first loss in four days. This could be in part due to ongoing Brexit issues with the Northern Ireland protocol. Also, there are further problems with China’s second largest property business – Evergrande – who are still unable to pay their debt payments which could have a knock on impact on the global economy.

As a result GBP/USD was around 1.3590 going into today’s London session.

Key Movers

After posting minor losses during the day, we saw the US dollar rebound overnight. Shaky financial markets due to headlines around the threat of COVID-19 variants as well as the energy crisis have driven demand for the safe haven US dollar.

The dollar index – which is a gauge of the US currency vs all of its major rivals – posted a 0.17% gain.

As a result of this we saw EUR/USD push a little lower overnight.

Today European Central Bank President, Lagarde, will give a speech at 4pm. Eurozone PPI numbers were also released today which meet expectations and so may not impact currency markets. Lagarde's speech on the other hand, could be scrutinised to see if she talks about rising inflation rates within the Eurozone, an issue that is at the centre of the euro.

Expected Ranges

GBP/USD: 1.3590 - 1.3660 ▲

GBP/EUR: 1.1715-1.1790 ▲

EUR/USD: 1.1620 - 1.1570 ▼

GBP/AUD: 1.8690 - 1.8760 ▲