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GBP remains flat ahead of Bank of England meeting

Wednesday 2 February, 2022

Daily Currency Update

The pound remained relatively flat yesterday, with what feels like the calm before the storm on ‘super Thursday’ with both the Bank of England and European Central Bank meetings. It is likely that the combined forces of the BoE potentially hiking rates, and the ECB remaining cautious, may put some pressure on GBP/EUR and we could see the pair rise. The data calendar for the UK is very thin today as we await the key announcements tomorrow.

Key Movers

In the US yesterday we saw ISM manufacturing data released, which was close to what the forecasts predicted. It fell to 57.6 from 58.8 which suggests that growth in the sector has managed to withstand COVID-19 impacts more or less. All in all the data did not appear too impactful for currency. Today the markets will turn their attention to the US ADP employment numbers from January but again the data is not expected to be too impactful on the USD. The EUR has found some support over the past few days since the release of the latest CPI numbers. EUR/USD has held firm and pushed higher, now close to the 1.13 level. Eurozone data is also very light for today with the only highlight being the flash January reading of Eurozone inflation.

Expected Ranges

  • GBP/USD: 1.3490 - 1.3560 ▼
  • GBP/EUR: 1.1955 - 1.2015 ▲
  • GBP/AUD: 1.9015 - 1.8920 ▼
  • EUR/USD: 1.1255 - 1.1310 ▲