The pound sterling edged higher against its US counterpart, and the GBP/USD pair moved above the $1.39 level. Analysts point to the UK government's vaccination program as one reason for the pound's appreciation, coupled with a softer US dollar. The latest data suggested to some market participants that the inflation rate in the US could be accelerating faster than analysts and the Federal Reserve anticipates. The pound continues to make headway agains the euro; today, the European Central Bank is expected to maintain the status quo with an exceptionally low interest rate environment. What will be more carefully watched than the ECB statement is the press conference held shortly thereafter. Christine Lagarde, head of the ECB, will preside.
In London trading as of 11:14 am, the GBP/USD was trading higher at $1.3955, a gain of 0.1737%; the pair has ranged from a low of $1.39182 to a peak of $1.39644 in today's session. The EUR/GBP was higher at 0.8573 pence, up 0.1753%, off the session low of 0.85511 pence while the high was recorded at 0.85825 pence.
Data Points to Consider
Tomorrow, a slew of data releases will help Forex traders gauge currency direction. Among the potential market movers are inflation data from Germany, with analysts expecting February's Harmonized Index of Consume Prices to be flat at 1.6% on an annualized basis. The Spanish Statistics Bureau is also due to release CPI figures for February. In the Eurozone, Industrial Production figures are to be released by Eurostat, with a slight rise to 0.2% from -1.6% forecast for January. Prior to those releases, the Office of National Statistics in the UK will be releasing manufacturing and industrial production numbers for January.