Vessey added: “GBP / EUR could be approaching new 13 month highs as euro demand continues to decline.”

Looking ahead to the week ahead, he said, “In this week’s data file, Friday is a short-term indicator day – the UK reports monthly GDP results, industrial and manufacturing output and trade account.”

Vessey continued, “The volatility in the bond markets has shocked the equity and currency markets over the past few weeks, but the bond sell-off should be contained by central bankers with a strong verbal repetition in the coming days.

“The successful vaccination history to date and the easing of lockdown measures are raising inflation expectations as investors bet on pent-up consumer demand that drives prices higher during the economic recovery cycle.”