Sterling lost some of its recent gains in a disappointing day for the currency on Thursday.
The pound had risen 3.9% against the dollar over 10 consecutive days, but yesterday fell back below the 1.27 level to snap that streak. This had as much to do with dollar strength as Brexit concerns weighing on sterling. The UK has until the end of the month to request an extension to the transition period. Talks so far have produced little result.
Versus the euro, the pound was down around 0.5% on the day, before recovering slightly by the close.
This morning has already revealed a historic decline in GDP output for April of 20.4%, versus expectation of an 18.6% drop. So far, this has had little impact on sterling value.
GBPUSD opened at 1.2706 and declined throughout the day, closing at 1.2603
GBPEUR opened at 1.1157, dipping as low as 1.1098 before closing at 1.1127
There was little news Stateside yesterday as the dollar continues to move based on risk sentiment, making gains of a cent against sterling as the day progressed.
The greenback also reversed recent losses versus the euro, gaining 0.4%.
Focus will be on this afternoon’s reading of the preliminary Consumer Confidence figure, forecast to come in at 75.
There is little to report from the eurozone, with the single currency performing in reaction to its peers. The euro did briefly manage to break the 1.11 trading level versus sterling yesterday, but lost some ground to the US dollar, breaking its recent upward trajectory.
EURUSD opened at 1.1384 and closed at 1.1326