Home Daily Commentaries Sterling continues to decline

Sterling continues to decline

Daily Currency Update

However, the currency market could find some comfort in the fact that, thanks to a widely vaccinated UK population, hospitalisation numbers and deaths are not rising as fast as they had been in previous waves.
In Brexit related news, a truce to end a continuing post-Brexit trade row between London and Brussels over the movement of chilled meats from Great Britain to Northern Ireland, called the sausage wars, is reported to be closed ahead of Thursday’s deadline. This may relax fears of further GBP decline.

Key Movers

The euro found some support from surging consumer confidence data. Economic morale in the region hit a 21 year high, with figures coming in at 127.3, above its forecast of 118.9.

Attention will now turn to Eurozone inflation which is expected to just ease back slightly from 2% in May to 1.9% in June. This fall in inflation could be a short stop before another surge around the corner, adding to an increasingly heated debate at the European Central Bank about potential next steps towards the tapering of their Quantitative Easing programme. The ECB holding such a conservative stance may lead to more euro weakness.

Expected Ranges

  • GBP/USD: 1.3805 - 1.3835 ▼
  • GBP/EUR: 1.1625 - 1.1645 ▲
  • EUR/USD: 1.1875 - 1.1895 ▼