The pound fell again after hitting new 13-month highs against the euro yesterday when it broke the 1.1800 level. Initially backed by confirmation by Boris Johnson on Monday that the easing of UK restrictions will continue as planned, it declined steadily throughout Tuesday, shedding more than a cent against the euro and the US dollar. The EU is publishing its unemployment rate at 8.3%, in line with its previous reading, but Sentix’s investor confidence was significantly better than expected, helping the euro regain its strength against the pound.
Today we have service sector PMI releases from the EU and UK. Readings above 50, indicative of expansion, will be pivotal for each currency, while the main driving forces for the dollar will be later in the day when President Biden will deliver a speech that will undoubtedly touch upon further plans to roll out vaccinations in the United States. … they have steadily scaled up, and the FOMC minutes to be published will provide further guidance on US monetary policy.
This morning we open currency pairs at 1.1620 for GBPEUR, 1.3800 for GBPUSD and EURUSD holds in the 1.1875 range.
Have a nice day.
Chris Allan, Senior Account Manager.
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