Sterling opened the day relatively unchanged having held above the EUR 1.1600 pivotal level during the last 24 hours. Against the US Dollar, we are unable to break out of this recent $1.4100 – 1.4200 range for the time being. Traders/investors are likely to focus on the latest US inflation data and the ECB meeting, both this week. On the Covid front, health Minister Hancock stated that ‘jabs are working’ as hospital admissions remain flat, despite the Indian variant.

The US Dollar saw moderate selling interest yesterday across a broad range of currencies. The latest US CPI inflation will likely be the next mover on any surprise numbers (released Thursday). Long term US Dollar weakness persists despite the recent spike in inflation in the USA. Treasury Secretary Janet Yellen’s recent comments on higher interest rate expectations has had zero impact with regards to a firmer Dollar.

German industrial production (m/m) came in below consensus at -0.1% (exp +0.5%), the Euro has barely moved on this. German and Eurozone ZEW economic sentiment surveys are released a little later this morning (10am). Traders/investors await the latest ECB policy meeting and press conference results on Thursday.

Opening interbank levels:
GBP/USD 1.4157
GBP/EUR 1.1623
EUR/USD 1.2177