GBP

Sterling closed in New York off the highs seen on Friday following strong weekly gains across a broad range of currencies. From a technical perspective, both $1.3900 & EUR 1.1700 are likely to be key levels going forward having traded either side of here in Asian markets. As new Covid cases fell 30% over the last week, the UK announced a loosening of some travel restrictions for those with ‘double’ jabs entering the UK. Manufacturing purchasing managers index for July is released at 9.30am.

USD
The US Dollar is generally weaker across the board following last week’s Federal Reserve ‘dovish’ stance, however, the broad- based Dollar index has so far held onto its 200-day moving average. June US construction spending & the ISM manufacturing index for July are released at 3pm today.

EUR
The Euro has held onto the gains seen against the Dollar to the tune of 1% since the Fed news with $1.1850 offering strong technical support now. German July retail sales this morning beat expectations (+4.8%, expected +4.2%) ahead of German & Eurozone manufacturing PMI’s at 8.55am and 9.00am respectively.