A quiet day yesterday saw the majors trading in a tight range, with sterling giving up very slight ground versus the US dollar.
PPI data on Wednesday showed that UK inflation fell last month to its lowest level since June 2016. Whilst not impacting pound value directly, it does give the Bank of England greater scope to boost its stimulus programme above the anticipated injection of £100bn, when policymakers meet later today.
Intensified Brexit negotiations are ongoing, but the focus today will be on that BoE meeting at lunchtime.
GBPUSD opened at 1.2561, closing at 1.2539
GBPEUR opened at 1.1157, closing at 1.1169
Risk aversion continues with the recent spike in coronavirus cases stoking fears of a second wave and the US dollar remains firm as a result.
There was nothing of note from Fed Chair Jerome Powell’s ongoing Senate testimony yesterday and there is nothing significant on the calendar today. The weekly unemployment data each Thursday is unlikely to have much of an impact.
There is little to report from the eurozone aside from Brexit negotiations. The single currency yesterday traded in a very tight range versus its peers.
EURUSD opened at 1.1257 and closed at 1.1230
In other news, the Australian dollar is under pressure after data yesterday showed the economy shed a quarter of a million jobs and the unemployment rate jumped to its highest level in almost two decades in May. The figure represents twice as many jobs shed as expected.