Sterling has traded in a relatively tight range overnight, having held onto moderate gains seen this week across a broad range of currencies ahead of tomorrow’s Bank of England policy meeting and statement. Sterling ‘bulls’ are encouraged by the fact both key support levels have held so far, $1.3900 and EUR 1.1700, forward guidance from the Bank is expected to be key. New Covid cases fell again albeit small, although 138 deaths were recorded, the highest since March. July purchasing managers index for the services sector will be released at 9.30am

Broad based US Dollar weakness sentiment remains intact, this has been the case since the Fed’s ‘dovish’ statement from last week. Meanwhile, US stocks/indices have again held close to record highs despite the small sell off yesterday. MBA mortgage applications, July services PMI and the ISM non-manufacturing index are all released this afternoon.

Like Sterling, Euro bulls remain confident having seen $1.1850 hold during the last two trading days. The latest Eurozone PMI services & retails sales data are released at 9.00am & 10.00am respectively.