Yesterday saw the GBP/USD rate storm through the key resistance level of 1.39, trading at month long highs of 1.3980. The dollar took yet another battering as the Federal Reserve expressed hesitation at acting too swiftly following on from some positive figures of progress seen of the US economy. This only fuelled the pounds performance when pairing it with the steady flow of positive data regarding the number of coronavirus cases appearing to be on a downward trend.
Meanwhile, against the euro, the pound has also seen favourable gains trading at its highest levels since April. The GBP/EUR rate is currently sitting at 1.1738 at time of writing, whilst talk amongst analysts is positive, predicting 1.20 in sight if key resistance levels of 1.18 are surpassed. Again, this is all fuelled by positive developments which in turn may enable the Bank of England to raise interest rates ahead of it’s US and EU counterparts.
In other news, the euro has also benefitted following on from reservations from the Fed regarding its monetary policy, as well US GDP results falling short of expected levels. The EUR/USD rate is currently trading at multiweek highs at levels of 1.1890 at time of writing.
Have a good weekend.
Holly Tobia-Parkyn, Relationship Manager.
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