GBP

Sterling gave back any gains seen on Tuesday when EU Commissioner Sefcovic said they will step up legal action if the UK does not adhere to its obligations on Northern Ireland. The European Union urged London to consider a Swiss style agreement on agri-foods to end this post Brexit ‘war’. The Pound was witness to heavier losses against the general firmer Dollar, losing up to 1 cent on the day and 0.50 cents against the Euro.

USD
With Delta covid variant cases rising significantly in the USA and weaker than expected services PMI readings, stocks/indices traded lower supporting the case for US Dollar safe-haven’ buying by investors. Dollar strength persists for the time being, this evenings Federal Reserve minutes release will likely dictate the next move.

EUR
Key support of $1.1850 finally broke attracting speculative selling in this stronger US Dollar environment as Eurozone economic data continues to underperform. German industrial production for May today came in below consensus (-0.3%, expected +0.5%)