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Pound struggles in absence of economic data

Tuesday 24 August, 2021

Daily Currency Update

The 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 Movers

The 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.

Expected Ranges

  • GBP/USD: 1.3715 - 1.3765 ▼
  • GBP/EUR: 1.1665 - 1.1695 ▲
  • EUR/USD: 1.1725 - 1.1775 ▼
  • GBP/AUD: 1.8915 - 1.9015 ▲