Yesterday saw some wobbles for cable following on from some promising US data, with the US Consumer Price Index coming in at 5.4%, beating estimates. The GBPUSD rate has now stabilised in the region of 1.3820 following on from some lows of 1.38. This now begs the question of how long the pound can continue to rely on the promise of higher levels of economic growth post July 19th, and the UK’s rapid vaccine rollout before the pound starts to lose momentum.
The GBPEUR rate has seen some tentative gains over the course of the week, now trading comfortably in the range of 1.1720 at the time of writing.
Meanwhile, the EURUSD rate has slumped almost 1% following on from the aforementioned US CPI findings, now trading within the 1.1780 region. Analysts predict a continuation of these kinds of levels with some potential gains to be made later on in the year following on from the European Central Bank’s announcement of its inflation target of 2%, coming in less aggressive than some predicted, providing further support to the Euro.
As ‘freedom day’ fast approaches, all eyes are on the government and how they intend to keep hospitalisations down once all legal restrictions are lifted.
Have a great day.
Holly Tobia-Parkyn, Relationship Manager.
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