Rates as of 0500 GMT

Market Recap

GBP bounced back on Friday. GBPs movements once again seem to be the counterpart to EUR that is, people buying or selling EUR are doing it vs GBP rather than USD. You can see how closely GBPUSD and EURGBP moved on Friday and today.

As for why people were selling EURGBPthis is kind of a mystery to me, especially as it follows Thursdays announcement by the Scottish National Party SNP that they will hold another independence referendum by the end of 2023 if they win in the Scottish Parliament elections on May 6th which it looks like they will. Scotland voted against independence by 55 to 45 in 2014, but the Scots also voted remain and are proEU probably more proEU than they are proEngland.

The only explanation I could find was the usual one about how virus cases are lower and vaccinations are going better in the UK than in the Eurozone. Thats true, but it was true earlier in the week while EURGBP was going up every day, too. I think people just trot out that explanation when a reporter calls them up looking for an explanation and they cant figure out why the currency is moving. No one can justify their huge salary at an investment bank by saying beats me, mate! I dunno so they have to say something. Believe me, Ive been there.

Commitments of Traders CoT report

There was almost no change in the overall positioning vs USD last week as some significant moves in a few currencies cancelled each other out. There was a big increase in…