With no UK data out today, Sterling has now settled at new levels as we end the week. Having established above $1.3900 following the Federal Reserve statement on Wednesday, Sterling ‘bulls’ appear to have the upper hand. Likewise, against the Euro, the Pound has also held the 1.1700 level, although failed to break 1,1750 for the second day during the Asian session. Any progress or set back on Covid numbers will likely influence short term volatility.

The ‘dovish’ tone given to markets by the Federal Reserve 36 hours ago means the US Dollar broad based index is sitting at monthly lows, with US stocks/indices closing last night near to or at record highs. However, indices are being marked down to the tune of 0.5% this morning. The US Dollar feels under pressure across the board, having seen both GBP & EURO break key resistance levels on Wednesday (1.3900 & 1.1850 respectively). PCE core prices index & personal spending for June are released at 1.30pm with Michigan consumer sentiment for July at 3pm.

The $1.1850 level is likely to remain key based on a weekly close having held above here during the last 24 hours. European GDP and consumer inflation are on the agenda this morning with France preliminary GDP having beaten expectations (Q/Q) at +0.9% (consensus +0.8%).