Pound struggles in absence of economic data
Tuesday 24 August, 2021
Daily Currency UpdateThe 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 MoversThe 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.
- GBP/USD: 1.3715 - 1.3765 ▼
- GBP/EUR: 1.1665 - 1.1695 ▲
- EUR/USD: 1.1725 - 1.1775 ▼
- GBP/AUD: 1.8915 - 1.9015 ▲