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All eyes on the ECB interest rate decision

Thursday 9 June, 2022

Daily Currency Update

Yesterday the euro gained some momentum against the pound as the European Union announced the GDP figures for year on year which came in better than expected at 5.4%. Today the European Central Bank decided to keep both the Deposit Rates (-0.5%) and Interest Rates (0%) at the same levels as previous - as this was already priced into the market initially there was no real affect against the pound however not long after the announcement was made the euro began to regain some strength against sterling. As a result of these decisions we did also see the EUR drop against the US dollar as the market moved from 1.0746 to 1.0690.

Key Movers

USD/JPY has reached the 134.00 mark, its highest level in over two decades. All eyes will be set tomorrow for the Consumer Price index excluding food and energy for the year on year and month on month for May. It is also expected that the US Federal Reserve will be raising its benchmark funds rate by 50 basis points on Wednesday next week and potentially again in July.

Expected Ranges

  • GBP/USD: 1.2494 - 1.2554 ▼
  • GBP/EUR: 1.1667 - 1.1705 ▼
  • GBP/AUD: 1.7418 - 1.7485 ▼
  • EUR/USD: 1.0699 - 1.0772 ▼