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Good morning,
Yesterday saw GBPUSD push to 3-month highs of 1.4219, after the UK’s unemployment rate beat estimates and dropped to 4.8%. News of a decreasing employment rate indicates the UK economy is strengthening, though fears of the ‘Indian Covid variant’ spreading throughout the UK could keep the pound pressured. EURUSD has also regained the 1.22 mark amid a weakening USD and a risk-on sentiment globally.
This morning’s data release saw UK consumer price index beat expectation at 1.5% YoY for April, GBPUSD has settled just under 1.42 this morning. CPI is being monitored closely by the BoE as they look to reduce their bond purchasing program. EURUSD has continued its push from 1.2050 to highs of 1.2240 in less than a week. Even with rising inflation in the US, the Fed have stuck to their bond-buying scheme, pressuring the USD to the three-month lows vs the EUR and GBP respectively.
Today, European CPI data is released as well as the FOMC minutes, which will give insight to the Fed’s policy concerns. CPI in the US is at its highest annual rate in 13 years, employment figures are not where they want them, and no sign of tapering the monetary policy continues to damage the dollar. The minutes will be looked at closely, though with little room to move, the greenback could continue to fall.
Have a great day.
Relationship Manager, Thomas Read
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.
References
https://www.fxstreet.com/currencies/gbpusd
https://www.poundsterlinglive.com/gbp-live-today/15435-indian-variant-pound-to-euro-and-dollar