Here's your Daily Currency Update – 17 August 2026

• Since our last report on 12 August, sterling has quietly strengthened against the dollar, lifting GBP/USD from the mid-1.34s toward 1.3560.
• GBP/EUR has stayed remarkably steady around 1.169–1.171, giving UK buyers of eurozone property a useful period of relative calm.
• China's soft July industrial and retail numbers set a cautious tone early Monday, while the NY Empire State index slumped well below forecasts.
• Canadian CPI is due later today; the real sterling focus arrives Tuesday with UK labour data and Wednesday with July inflation.
• FOMC minutes and Friday's flash PMIs will keep the dollar honest through the rest of the week.
• Jamie Dimon's warning to the Chancellor about bank taxes added a familiar City subplot over the weekend – nothing new under the British sun.
• Current mid-market ranges: GBP/EUR €1.1593–€1.1688 | GBP/USD $1.3423–$1.3545.
• Week-ahead range outlook for all three pairs (to 3pm Friday UK time) is included further down the report.

From the close of our previous note on 12 August through to this afternoon, the pound has shown a quiet resilience that rather suits the national character. GBP/USD climbed roughly half a cent as the dollar softened on mixed US data and shifting rate expectations, while GBP/EUR held a tight range near 1.17. That stability has been quietly helpful for UK residents eyeing property on the Continent – the sort of unspectacular good news that rarely makes the headlines but does make the monthly direct-debit calculations a little less grim. China's underwhelming July activity figures and a surprisingly weak New York Empire State reading (-10.6 versus +10.6 expected) set a cautious tone this morning, yet neither has derailed sterling's recent progress. Looking ahead, Tuesday's labour-market numbers and Wednesday's CPI will dominate the sterling conversation, with the FOMC minutes and Friday's PMI flashes providing the broader dollar backdrop. A light touch of British understatement is in order: the week is unlikely to be dull, but nor is it shaping up to be the sort of drama that requires a stiff drink before 5pm.

• The cross has been the picture of British stoicism – little drama, steady footing, and a useful lack of nasty surprises for anyone converting pounds into euros.
• That relative calm continues to favour UK buyers of eurozone property, who have enjoyed a more predictable purchasing power than in some earlier stretches of the year.
• With no major euro-area data until the Friday PMI flash estimates, the pair's near-term direction will hinge more on sterling-specific releases than on Frankfurt.

• Sterling has taken the dollar's recent soft patch in its stride, posting a measured advance that looks rather more like quiet competence than exuberance.
• The gain since mid-last week leaves the pound in a stronger position than many had pencilled in after the previous report.
• Tuesday's employment figures and Wednesday's CPI remain the key domestic tests; a solid showing would reinforce the recent constructive tone.

• The euro has tracked the dollar's softer tone higher, though without the same domestic data tailwinds currently supporting sterling.
• Divergence between GBP and EUR performance against the dollar remains modest for now, but UK-specific releases this week could widen it.
• Friday's flash PMI readings for the eurozone will be the first meaningful test of continental momentum.

• GBP/EUR: expected trading band 1.1650 – 1.1750
• GBP/USD: expected trading band 1.3480 – 1.3650
• EUR/USD: expected trading band 1.1520 – 1.1680