GBP

Sterling closed below the pivotal $1.3900 level on Friday following the stronger US data last week which reflected higher US treasury yields. There has also been weekend press speculation of a rift between PM Boris Johnson and Chancellor Rishi Sunak, this to-date has capped Sterling at 1.1800 against the Euro after last week’s steady gains.

USD
The US dollar index hit two-week highs overnight as the Dollar held onto its recent gains across a broad range of currencies. This was reinforced by the stronger than expected non-farm payrolls on Friday (943k v 870k consensus) and the recent ‘hawkish’ rhetoric by the Federal Reserve. Senators hoisted the $1 trillion infrastructure package over another hurdle late Sunday and will try to push this through in the next few days. US stocks/indices are holding close to record highs as a result.

EUR
The Euro hovered around the two-week lows earlier today having again tested $1.1850. Data from the EU has to date been mixed as the ECB appear cautious over any tapering of Q/E.