The lack of data for the UK this week has meant the pound has struggled to gain much ground against the euro and is trading around the same levels as yesterday. Sterling has, however, hit a weekly high against the dollar.
The euro is overall quite volatile against the dollar after two sets of disappointing German data. Markets will now be listening for any hints of changes to monetary policy in the European Central Bank’s meeting at lunchtime which could give the euro fresh strength.
In the US, the dollar is benefitting from positive progress made by Congress around a $3.5 trillion infrastructure bill, something that would give a big boost to the economy. Later today we will see data for both GDP and employment which could give the dollar new direction.
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