GBP consolidates ahead of US inflationary data

Daily Currency Update

GBP has continued to extend its lead over the USD post-Bank of England (BoE) rate cute, currently trading around the 1.3450 mark, down slightly from its two week high of 1.347 after the US recovered its opening losses with investors looking toward tomorrows US inflationary data. Despite the BoE cut giving the Pound some strength, it is still being weighed down by inflation concerns, stagnating growth and worries about fiscal policy and potential tax hikes.

The Euro has been more volatile with the Pound, bouncing between 1.1527 & 1.1555. However, the lack of any meaningful economic data should make trading more stable today for the GBP/EUR pair.