Sterling’s gains against the generally weaker US Dollar have yet to hold onto highs for the year above $1.4200. Short term moves are likely to be dictated by the UK government and its ability to control the new strain of the Indian virus. The latest UK inflation (April CPI) came in just above market consensus at 1.5% (expected 1.4%), The Pound upon release has barely moved from its opening levels (just a tad weaker).
USD The Dollar continues to trade on the weaker side across a broad range of currencies, supported by comments from several Federal Reserve officials this week indicating the board remain committed to low interest rate policy despite last week’s spike in U.S. inflation. In this evenings Federal Reserve minutes release, there could be a clearer viewpoint on interest rates/inflation reflecting the general views of ALL board members.
EUR Euro gains have held this week, up over 1 cent against the weaker Dollar. The latest Eurozone inflation data will be released at 9.a.m. today.