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Sterling Still Looking Vulnerable

Sterling Still Looking Vulnerable

The Pound Sterling exchange rate has found itself in the crosshairs of a persistently pessimistic outlook with the UK currency becoming the subject of increasingly bearish and widespread press coverage in recent days following a number of reports it could be on the cusp of a sizable leg lower against its major counterparties.

Talk of stagflation in the UK media and GBP perma-bears, an ever-present market feature since the 2016 Brexit vote, have reemerged with confidence after spending most of 2021 in a subdued state. 

In level terms, GBP/EUR opens this morning flat around the 1.1750 mark with Cable (GBP/USD) dropping off slightly to trade just under the 1.26 mark. The EUR/USD, after picking up recently has too started to tail off to level out circa 1.0715. 

Datawise and on the docket today, a busier day across the pond with the Bank of Canada meeting for their interest rate decision alongside ISM Manufacturing PMI data due in the US. A little closer to home, Eurozone unemployment rate is expected for April, which is forecast to edge lower to 6.7% from 6.8% with ECB President Lagarde also speaking around lunchtime GMT. 

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