Home Daily Commentaries Sterling surges back once again

Sterling surges back once again

Daily Currency Update

GBP - British PoundThe pound chose yesterday to enjoy its strongest day of the year with the form continuing this morning and GBPUSD touching 1.4000. GBPEUR also benefited yesterday recovering some of the ground it lost earlier in the month. Unemployment and jobless claims beat expectations this morning but wage growth still lagged. From a data perspective the focus is now on tomorrow with inflation figures set to be released and the encouraging vaccine take up rates surely adding fuel to the GBP fire at the moment.

Key Movers

Perhaps of more significance than the pound's flurry is the US dollar slump we are seeing. The dollar has slipped to six week lows mostly driven by the fact that US treasury yields sit a way off the highs seen in March therefore dampening investor appetite for the currency. Even a slump in equity prices hasn't driven the dollar. For EURUSD therefore we are seeing push through 1.20 which is significant ahead of the ECB meeting on Thursday. There has been a 2.5%+ recovery in the currency pair since the start of the month and it will be interesting to see whether Christine Lagarde comments on the recent Euro strength, something she has at times touched upon in the past.

Expected Ranges

  • GBP/USD: 1.3850 - 1.4000 ▲
  • GBP/EUR: 1.1540 - 1.1635 ▲
  • GBP/AUD: 1.7840 - 1.8040 ▲
  • EUR/USD: 1.1940 - 1.2080 ▲