21st June - Weekly FX Update

GBP/EUR

Monday 9:10 AM 21st June: 1.16435

Despite lockdown extending another 4 weeks, the Pound found a significant catalyst to continue its gains over the Euro last week with its latest inflation figures, reaching a weekly high of 1.17043. The British economy saw inflation at 2.1%, which exceeded not only the market's 1.8% prediction, but also BoE's target of 2%. Eurozone figures were also positive. The rate dropped off slightly heading into the weekend as some investors took quick profits ahead of the BoE's interest rate decision announcement on Thursday.

GBP/USD

Monday 9:10 AM 21st June: 1.38491

After some significant gains over the Dollar recently, GBPUSD slipped below 1.38 last week. On Thursday, the Federal Reserve made surprising comments, stating they were prepared to increase interest rates and reduce its bond-buying sooner than expected in an attempt to slow inflation. This extended its dominance over the Pound last week following on from Boris extending lockdown amid rising Delta variant cases in the UK. The Pound is now attempting to settle back above 1.38, and made some strong headway early this morning in doing so which provides it with some positive market sentiment to start the week.