The pound touched new highs against the euro throughout trading yesterday, passing through the yearly high set on Monday. Reaching above 1.1830 this time around, you would yet again have to go back to February 2020, when the rate was plummeting from 1.2070 highs as the Covid pandemic was starting to take a hold of Europe.
Against the dollar, however, gains have been elusive for the pound. Sinking near 1.2% since the end of July, GBPUSD has seen any previous positive momentum stutter. Analysts are predicting the key psychological level at 1.40 could be hard to see with sentiment following the current path. With the dollar being so strong, EURUSD is currently testing a 2021 low, which is 1.1708 at the time of writing. Markets appear to be turning a bit of a blind eye to the surge in Delta variant cases.
The economic calendar is relatively light today, with inflation data released in the US being the key talking point. Should the release come in better than expected from the US economy, EURUSD could surpass the yearly low. Tomorrow will see a slightly busier day for economic releases, where UK data will be at the forefront early in the morning.
Have a great day.
Jack Nicholls, Relationship Manager.
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