BoE To Slow Sterling Gains
The British Pound has rebounded against most major currencies as July comes to a close with next week’s Bank of England policy update possibly invoking some caution amongst investors.
Advances in sterling come amidst falling Covid cases in the UK and an assumption the Bank of England will be amongst the first set of central banks to raise interest rates in light of a strengthening economy and rising inflation levels.
Meanwhile, in the Eurozone, the headline EC economic sentiment index rose to its highest level on record, with a reading of 119 (from 117.9), which was also above expectations (117.9). This survey combined with the recent PMIs indicate a strong start to Q3 and augurs well for robust GDP growth in the quarter.
As trading gets underway this morning, the opening levels show little change over the last 24 hours. EUR/USD has edged higher into the upper half of the 1.18-1.19 band, GBP/EUR continues to be pinned down near to the 1.1735 threshold whilst GBP/USD continues changing hands between 1.39-1.40.