Never miss a market update. OFXpert commentary straight to your inbox
Sterling drops to fresh lows
Written by
Daily Currency Update
The market was relatively quiet yesterday with minimal macroeconomic data. Although market participants were keeping an eye on ECB President Lagarde’s speech at Yale University. Unfortunately, he did not refer to monetary policy as expected by the market. The GBP/USD pair continued to decline, reaching a session low of 1.2300, a level not seen since November 2023. Similarly, the GBP/EUR pair also experienced a drop, falling below 1.1600.Key Movers
This morning saw the release of various data reports, including UK public sector net borrowing which rose to 11.0bio, surpassing both the previous 8.6bio and forecasted 8.9bio. Key European locations, such as France and Germany, along with the Eurozone, showed expansion in flash services PMI. However, manufacturing data presented a contrasting image, with all indicators coming in under the gauge between expansion and contraction, which is 50.0. Similar reports from the UK reflected Europe’s services expanding while manufacturing contracted. These announcements caused GBP/USD to trade at 1.2385 and EUR/USD to jump just below 1.0700.In the day ahead, we have flash manufacturing and services from the US with expansion figures expected from both. Alongside this we also have new home sales from the US. Tensions in the Middle East will remain a concern to currency volatility, with eyes also turning to the end of the week for the USD with the core PCE price index giving the latest inflation update from the US.
Expected Ranges
- GBP/USD: 1.2320 – 1.2430 ▲
- GBP/EUR: 1.1570 – 1.1620 ▲
- GBP/AUD: 1.9110 – 1.9290 ▲
- EUR/USD: 1.0620 – 1.0740 ▲
Want to stay ahead of market moves?
Subscribe to email currency updates from our OFXperts. We monitor global events and FX markets day and night, so you don’t have to.
* Required information
"*" indicates required fields