GBP

Last week’s upbeat economic data for the UK as well as the confirmation over the weekend that both the Astra Zeneca and Pfizer vaccines have a high success rate against the Indian Covid strain, has so far failed to inspire any extended Sterling buying to date. This year’s high above $1.4200 is likely to remain key as is 1.1600 against the Euro. Germany has now imposed tougher travel restrictions for UK citizens and France is considering similar as Indian variant cases continue to rise. The Pound closed in New York on Friday off the highs of the day and relatively unchanged at the open here today.

USD
Global stocks have broadly held on to the gains, resisting two aggressive moves lower over the last two weeks on fears of a U.S. spike in inflation and interest rates. For the time being, general confidence remains high that the weaker USD trend may continue, despite recovering moderately from last week’s lows. Market participants will be on data watch going forward.

EUR
The Euro also failed to hold onto last week’s $1.22 highs against the Dollar as Eurozone economic data remains lack-lustre in comparison to that of the UK and USA.

Opening interbank levels:
GBP/USD 1.4152
GBP/EUR 1.1610
EUR/USD 1.2188