Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home topics Foreign Exchange Pound fluctuates as eyes are on Downing Street - Euro currency news daily

Pound fluctuates as eyes are on Downing Street - Euro currency news daily

— filed under: , ,

GBP - British Pound

Yesterday the pound fluctuated against both the US dollar and euro as investors digested the latest from the ECB and US inflation figures.

It's looking more and more likely however that the UK could remain with restrictions beyond June 21st, a move that would depress the pound and weigh on it. As outlined earlier in the week, the extent of the pound's reaction would depend on the length of those restrictions and how far reaching they were. Watch out for any update over the weekend and perhaps the Andrew Marr show could be when more details are released.

This morning did see the latest release of UK GDP figures which showed the month of April expand by 2.3%, the highest monthly increase since July 2020. Whilst impressive, this did miss expectations slightly and the UK economy is still over 3% smaller than when the pandemic began. This reminder has knocked the pound slightly.

Key Movers

Over to the ECB who yesterday kept rates on hold as expected but Christine Lagarde, the head of the ECB, did state in her press conference that the rate of asset purchasing would be stepped up in the next quarter 'at a significantly higher pace'. This move saw the Euro lose some ground yesterday and could act as a drag on the currency.

In the US inflation has hit 5% on an annualised basis following yesterday's release, a rate that far outstrips the Fed's target of 2%. The Fed have maintained that these inflation numbers are merely 'transitory' but if they continue to skyrocket then at some point the central bank may have to step into the ring and tackle them. Any increase in rates therefore could see the dollar strengthen.

Expected Ranges

GBP/USD: 1.4080 - 1.4180 up

GBP/EUR: 1.1575 - 1.1640 up

GBP/AUD: 1.8190 - 1.8300 up

EUR/USD: 1.2100 - 1.2220 up


IMPORTANT: This communication has been prepared by marketing/sales personnel of UKForex Limited [CN:04631395] (trading as OFX) (OFX). This commentary is intended for informational purposes only and does not constitute substantive "research" as that term is defined by applicable regulations. OFX is an online foreign currency exchange money transfer service and does not offer any form of margin or speculative trading facilities; and neither it nor its employees are in the business of providing advice to consumers or investors. The information contained herein does not take into account the financial situation or objectives of any particular person and should not be construed as business or investment advice or investment recommendations. Recipients of this communication should exercise independent judgement and obtain advice from their legal, tax or financial advisors.

OFX has taken every reasonable precaution to ensure that any attachment to this e-mail has been swept for viruses. However, we cannot accept liability for any damage sustained as a result of software viruses and would advise that you carry out your own virus checks before opening any attachment.

OFX | 1st Floor, 85 Gracechurch Street, London, United Kingdom, EC3V 0AA


Document Actions

Save on your money transfers with EUbusiness and OFX

Eurozone Economic Calendar

Sunday 13 June


01:00 G7 Meeting

Monday 14 June


10:00 Industrial Production w.d.a. (YoY) (Apr)
10:00 Industrial Production s.a. (MoM) (Apr)

Tuesday 15 June


10:00 Trade Balance n.s.a. (Apr)
10:00 Trade Balance s.a. (Apr)

Wednesday 16 June


10:00 Labor Cost (Q1)

Thursday 17 June


01:00 Eurogroup Meeting
10:00 Consumer Price Index (MoM) (May)
10:00 Consumer Price Index - Core (YoY) (May)
10:00 Consumer Price Index - Core (MoM) (May)
10:00 Construction Output w.d.a (YoY) (Apr)
10:00 Consumer Price Index (YoY) (May)
10:00 Construction Output s.a (MoM) (Apr)

Friday 18 June


08:00 EcoFin Meeting
09:00 Current Account n.s.a (Apr)
09:00 Current Account s.a (Apr)
20:30 CFTC EUR NC Net Positions