Sterling recovered some of its losses on Monday across a broad range of currencies as Dominic Raab began formal trade talks with the 11 members of the Pacific Trade Bloc. Comments from Federal Reserve board member Williams also helped Sterling recover 1 cent against the US Dollar at one point from the low of $1.3820, $1.3900 is likely to remain a pivotal level this week. The Pound also hit weekly highs against the Euro, with 1.1700 offering strong technical resistance if seen. UK Public sector borrowing for May was down on the previous month (£21.3 billion v 31.0), whilst the CBI industrial trend orders for June are released at 11am.
USD The USD yesterday gave back some of the gains seen across the board as Federal Reserve’s Williams stated ‘economic conditions have not progressed enough for the central bank to shift its stance’. The US Dollar appears to have found a new range for the time being following the Federal Reserve official policy statement of last week.
EUR When the ECB’s Lagarde commented there were ‘upside risks to growth from a consumption bounce’, the Euro also recovered modestly against the Dollar on Monday, having traded either side of $1.1900 in the Asian session today. June Eurozone consumer confidence data will be released at 3pm.