GBP off peak but still looking good
GBP/EUR finished down last week after the European Central Bank’s monetary policy decision left investors secure in the knowledge that there wouldn’t be any further stimulus measures in the near term i.e. There would be no technical weakening of the euro via increased supply in the form of stimulus.
GBP/USD also finished the week down, albeit still at exceptional levels. The fall was caused by better than expected nonfarm payroll data from the US which also fed into the headline unemployment rate falling to 7.0%. Many market commentators would say this is the signal that the federal reserve needs to proceed with tapering, however the move in USD was only moderate which may show that the market knows better.
Today is an incredibly light day on the data front so we expect a generally sideways day as far as exchange rates are concerned.