The pound continues on its stellar run, with Covid cases continuing to fall. They have decreased every day for the past week, a fact that will undoubtedly have some policy makers at Downing Street breathe a sigh of relief.
GBP/EUR is trading around 1.175, which is a multi-week high against the single currency. Longer term, this move is also supported by the relatively meek position taken by the ECB, who signalled wanting to keep interest rates low for the foreseeable future.
Across the pond the Federal Reserve decided to keep interest rates unchanged, as widely expected. In the post-meeting debrief Powell said that the economy had strengthened, but that further support was needed. Inflation fears were once more played down as transitory.
The dollar strengthened modestly on the back of the news with the US Index last seen rising 0.23% on the day against its rivals. The pound’s march was halted as it failed to break the 1.39 resistance level.
Have a great day.
Thomas De Caluwé, Relationship Manager.
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