The Pound continues to impress as 2021’s top performing G10 currency was able to reach 33-month highs against the Dollar. Despite at present sitting comfortably above 1.38 and 1.14 against the Greenback and Euro, Sterling is susceptible to downside pressures dictated by external forces. Markets saw an example of this yesterday when a softer-than-usual day in the US equity market resulted in minor losses for Sterling. Being a ‘risk-on’ currency GBP is at the mercy of market sentiment, and a any changes could expose the currency to considerable losses. With this said, the efficiency of the UK’s roll out of the COVID-19 vaccine is doing well to keep market sentiment upbeat and support the Pound. The world leading vaccination programme has been a shining light to Sterling in difficult times – this, along with the BoE keeping interest rates on hold, are also two key factors to Sterling’s recent rally.
GBPUSD impressively started the day strong ,trading at 1.3831. More upside followed and the pair was able to finish Wednesday just below the 1.3850 mark at 1.3847. While the stock market took some momentum away from the pair, cable remains well supported and could very well advance further today.
Starting at 1.1401 GBPEUR was able to better that position, finishing the day at 1.1415. The Pound’s recent run of form has enabled it to reach levels not previously hit since May 2020. Given how the pair has performed of late, it is likely markets will see the pair rise higher.
EURUSD had a rather stagnant Wednesday, trading in a tight range for most of the session. Oddly enough, the pair started and finished the day at 1.2131. The pair has dropped off slightly since, trading this morning just above the 1.2120 mark.
On the data front, it is a quiet day with only a few considerable economic releases. To start the day, we have the weekly US Jobs Report, which will be closely watched as it should indicate as to how the US is recovering against the pandemic. Following Jobs, we have the Fed Monetary Policy Report at 16:00, and US Budget Plan 2022.