British Pound Strengthens Prospects Against Euro and Dollar

British Pound to US Dollar Exchange Rate Outlook: Rallies Above $ 1.40

The exchange rate between the pound and the dollar (GBP / USD) welcomed the weakness of the US dollar on Monday.

Gathering close to 1%, Cable caught the bears off guard and currently sits within 20 pips of the significant 1.40 handle price.

As price action skyrocketed, news of the coronavirus was actually less than stellar. Some new variants, in particular the Indian variant which prompted Prime Minister Boris Johnson to cancel his trip there, worry some parliamentarians.

bannerCases have also increased slightly as restrictions have started to ease, but if you are a GBP trader all you care about is if you can step up to 1.40 and try to cement a base to do so. a massive level run of 1.50 at one point. in the coming months.

READ: Pound to Euro forecast for next week: Is 1.16 achievable for GBP / EUR exchange rate buyers?

Euro (EUR) exchange rates advance ahead of ECB

The euro-dollar exchange rate rose to 1.20 on Monday, but failed to match its British cousin in the size of its gains as the EUR / GBP slipped.

An ECB meeting this week is the major risk event, but there was not much to move the euro yesterday.

Instead, the environment is mostly focused on the fluctuations of the dollar which we will cover in the next paragraph.

Scotiabank Foreign Exchange Transactions released the following comments highlighting the importance of the ECB’s decision n PEPP today, stating:

“The main event this week for the EUR will be the ECB’s policy decision on Thursday, with markets preparing to hint that the bank will slow its pace of PEPP after a temporary hike to control rising yields – such a suggestion would likely prevent a fall of the EUR to the 1.17 / 1.18 marks in the medium term. A reduction in the weekly acquisition rate of PEPP should take place in June or July according to the latest Bloomberg survey. “

  • EUR / USD forecast: Euro and US dollar exchange rates rise due to risk mood
  • Outlook for the US dollar (USD)

    On a rare day of decline for Wall Street, US bond yields rose and the dollar fell.

    Whatever the reason for the USD weakening, it was clear that selling stocks did not translate into a safe haven boost.

    Given that it was a Monday, a day known to have thrown false flags, it’s possible that everything will be immediately erased today.

    Either way, the lower buys we saw in equities weren’t there and bond yields turned out to be sticky.

    DXY bulls will no doubt be alarmed by this sale, especially on the day treasury bills sell.

    If the euro can continue to climb higher, there is still a lot of juice to come out of the dollar given the current positioning.

    Other currencies

    Dollar weakness continued through the overnight session as the Aussie jumped nearly 0.4% as trade began in Asia.

    This rise was fueled by the release of RBA minutes that were accommodating as usual, but did nothing to scare forward-looking Aussie bulls.

    USD / JPY fell 0.1%, while USD / CNH fell 0.15% as the Chinese Yuan posted another strong session of gains.

    The day to come

    We finally have UK data today as average earnings and unemployment data is pending for the British Pound.

    German PPI and New Zealand CPI data will be the most important data for the remainder of the day.

    Australia’s retail sales data ends the day’s session.

    Publicity

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