Flash: Bleak outlook for GBP & EUR - BTMU

FXstreet.com (London) - Lee Hardman, Currency Analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd said the scope for the euro and pound to continue to strengthen against the US dollar now appears limited.

This was said following last week’s policy announcements from the ECB and Bank of England which aimed to dampen further upside potential for UK and euro-zone rates on the back of strengthening cyclical momentum. The underperformance of the euro-zone and UK economies relative to the US should ensure that yield differentials continue to move in the US dollar’s favour ahead. ECB member Coeure and MPC member Miles are both scheduled to speak today.