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Inflation in the UK doubles in a year

Wednesday 19 May, 2021

Daily Currency Update

For the time being, GBPUSD and GBPEUR are rangebound this morning, with the euro in particular gaining some ground against the pound yesterday.

Key Movers

This Euro’s gain is reflective of the moves we are also seeing on EURUSD which is testing new highs every day. This euro strength could be underpinned by Friday's raft of PMI data from the Eurozone which will provide the latest health check of the European wide economy. Before that though we have today's ECB Financial Stability report. The US dollar woes continue however across the waters and not only is the dollar trading at a 3 month low against the euro but it has also dropped to a six year low against the Canadian Dollar as well. Tonight's Federal Reserve minutes may provide some respite for the dollar if the minutes show that the Fed could respond sooner rather than later to rising price pressures.

Expected Ranges

  • GBP/USD: 1.4080 - 1.4200 ▲
  • GBP/EUR: 1.1580 - 1.1650 ▼
  • GBP/AUD: 1.8180 - 18260 ▲
  • EUR/USD: 1.2130 - 1.2240 ▲