USD

US Dollar selling interest seen from last week has halted for the time being as inflationary fears creep in. US consumer prices are expected to rise by the most in a decade as the base effect from last year’s pandemic collapse reaches its height. CPI is expected to climb 0.2% in April, according to the consensus forecast from a Reuters survey. The escalation of conflict in the Middle East between Israel and Palestine has attracted Dollar safe-haven buyers in Asia today, this also led to a sell-off in global stocks, most indices fell over 2% yesterday.

GBP
Sterling’s broad-based gains on the week have held with exception to the US Dollar (see above) ahead of UK Q1 GDP data. Against the Euro, key technical support is seen at €1.1600. Nevertheless, confidence remains high in the UK for a strong economic post lockdown recovery. A report in the Times newspaper today suggests the rebound will be so strong, there will be no need for the Chancellor to increase taxes. Sterling has so far held above $1.4100 overnight.

EUR
Investors are focused today on the US data, hence the pullback to the $1.2100 support zone.. The Euro remains under pressure against in demand Sterling.

Opening Interbank levels:
GBP/USD 1.4115
GBP/EUR 1.1640
EUR/USD 1.2120