Good morning,

GBP lost out today to the dollar again, losing the 1.38 level, amid rising concerns about Britain’s planned reopening on the 19th of July and rising Covid cases in the UK. The pound would have looked to the FOMC meeting minutes for June for some respite, but unfortunately this did not deliver.

The document effectively reiterated the stance from the FOMC that inflation is expected to push moderately above the 2% mark with no signs of downplaying the hawkish rhetoric we received from the Fed in June.

Elsewhere, UK data failed to cause any serious GBP strength as the MoM House Price Index (HPI) showed a contraction by 0.5%, missing the markets expectations.

On the data front, later on today we have US unemployment claims forecast at 345k against previous of 364k. Friday also ushers in the start of both the G20 and also the POEC meetings.

Have a great day.

Author: Joshua Nagenthiran, Senior Relationship Manager


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References

https://www.forexfactory.com/calendar?week=jul4.2021#detail=121868

https://www.fxstreet.com/news/gbp-usd-remains-on-the-back-foot-post-fomc-minutes-202107071810

https://www.fxstreet.com/currencies/gbpusdhttps://www.fxstreet.com/analysis/gbp-usd-weekly-forecast-approaching-critical-support-fed-minutes-and-delta-could-down-cable-202107021507