15/07 – Inflation continues to be hot topic

15/07 – Inflation continues to be hot topic

GBP: Saunders discusses inflation at 11am

EUR: Continues to trade at the mercy of the dollar

USD: Testimonial day two 


Sterling moved higher yesterday against both the USD and EUR following the release of better-than-expected inflation data in the UK. The pound’s ‘rally’ was cut short as US trading opened and UK employment data was marginally worse than expected this morning.

Sterling sellers returned to the market as uncertainty continues to creep in as the UK recorded its highest number of Covid cases since January. Inflation once again is a hot topic in the UK as the Bank of England’s Deputy Governor, David Ramsden, stated that the UK Monetary Policy may have to be tightened earlier than previously thought, believing inflation could peak at 4%.

PM Johnson is due to speak in the West Midlands on the government’s ‘levelling-up’ program and Bank of England MPC member Saunders is discussing inflation at 11am. 


The euro acted as a by-product for most of yesterday, struggling against sterling’s gains. As US trading hours opened, the single currency did retrace some of its losses and pushed back from a key support level following Jerome Powell’s comments.

There’s no major data due from Europe today.


Testifying to a Congressional Committee, Fed Chair Powell believes the central bank was ‘sensitive’ to inflation concerns. The central bank is very much playing both sides of the field as we have comments from the Fed chair stating inflation has increased quicker than expected, but also belief that this is a short-term concern.

Powell continues his testimonial today, and data in the shape of jobless claims and Philadelphia and NY State manufacturing indexes are released at 13:30.

Market rates

Today’s Interbank Rates at 10:05 against sterling. Movement vs yesterday.

Euro€1.168 ↓
US dollar$1.384 –
Australian dollar$1.853 
South African randR20.10 
Japanese yen¥152.0 

Have a great day everyone.

Thanks for subscribing to our market reports!

You've been added to our Chief Economist's mailing list for his morning reports.

Jeremy Thomson-Cook

Jeremy Thomson-Cook

Jeremy has over 13 years experience working in the FX industry. As a specialist in political risk mitigation and currency hedging, he regularly advises clients on the day-to-day moves of the markets and the implications of fiscal and monetary policy on international businesses.