Sterling regains lost ground

We saw the Pound regain some composure during Monday’s trade. Having been battered for a few days by the resurgent US Dollar, the Pound levelled off at the bottom of recent ranges and regained some strength. GBPUSD is back up to $1.39 and GBPEUR tested that pesky €1.1700 level again yesterday before levelling off a quarter of a cent lower than that. A drop in UK public sector borrowing will have helped support the Pound but, other than a CBI survey, there is nothing else coming through today to support Sterling.

GBPAUD highest since May 2020

GBPAUD spiked above 1.8500 overnight; the highest level we have seen since May 2020 as US Dollar weakness continues to damage the currencies of commodity producers. A little bit of profit-taking brought that back down a third of a cent but the rate remains elevated.

The GBPNZD rate had a similar spike; hitting 1.9950 again before profit-taking brought that one back down below 1.99 again. New Zealand credit card spending is still posting big gains compared to the lockdown period of 2020 but that isn’t likely to have been behind the drop. That kind of recovery is inevitable.

Jerome Powell’s testimony is the days Spotlight news

Having been the markets’ darling for the last week, the US Dollar’s big test will be the testimony of the Chairman of the US Federal Reserve to the Joint Economic Committee, in Washington DC later today. Jerome Powell is to cover the economic conditions and recent changes to the Fed’s stated policy. That will influence the market attitude to bonds, shares, and the US Dollar. Its impact on the US Dollar will also affect commodity and energy prices and that impacts the currencies of the producers. So, hang on tight. There is a smattering of other US data this afternoon but none of it has the same gravitas.

And the best Dad Joke has been selected from 2,700 entries. The winner is the old one about having a limo but nothing to chauffeur it. That’s lame but one of the other entries is quite good. “Someone has glued my pack of cards together – To be honest, I don’t know how to deal with it.” I am a dad, so I am allowed to tell these. In fact, I think I am supposed to. I think it’s the law.

Pick your currency, check the rate

✓ Friendly, fast & reliable service ✓ Secure bank transfer ✓ Excellent Competitive rates
  • (No cash, bank to bank transfers only.)