Sterling rose against the US Dollar on Thursday after Bank of England policymaker Vlieghe said the central bank was likely to raise rates well into next year, while noting an increase could come earlier if the economy rebounds more quickly than expected. As a result, the Pound again broke through key short-term resistance of 1.1600 v Euro and opened just below 1.4200 v Dollar. Added to this, Boris Johnson said there is now ‘a very good chance’ of ending Covid restrictions on 21st June.
USD Global stocks/indices, particular the DJ index, closed on the highs of the week last night. Investors await today’s latest inflation readings, the core price index (PCE for April) as the Dollar refuses to break out of this longer term down trend across a broad range of currencies. There has been early moderate US Dollar buying however when Europe opened for business today.
EUR The Euro traded back to $1.2200 at one point in the general weaker US Dollar environment and ahead of the release of Eurozone consumer spending data for April.