24 JULY 2020
HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
The Pound opened the week against the US Dollar at 1.2560 pushing lower down to 1.2520 in early morning of trading due to the pessimism surrounding Brexit, tussles with China and of course talks from the BoE on negative interest rates over the weekend. GBP did manage to find some fresh buying, recovering from the lows and pushing towards the 1.27 region by Tuesday evening, with positive outlook on PM Boris mentioning they remain committed to agreeing with the EU, on the outline for a balanced post-Brexit agreement. Over the mid-week period, Sterling traded around the 1.2650 and 1.2700 region with a quiet week for the UK & US Dollar in the economic docket. This morning, the UK did release their Retail sales figures for JUNE, which came out at a staggering figure of +13.39% expected 8%. Cable is currently trading at 1.2740 currently +1.3% higher for the week.
Against the Euro
This week, the Pound opened against the Euro at just below 1.1000 (0.9090), pushing a little lower to 1.0940 which came out near 1 month lows. GBP managed to turn this around, as the "Queen's finest" rallied through 1.10 up to 1.1060 by Monday evening on the back of BoE's comments on looking into negative rates would only by considered, if there was a further negative shock to the economy. GBP was helped also by profit taking against the home currency, allowing some breathing space for the Pound to push higher. On Tuesday, GBP saw highs of 1.1110 but failed to capitalise by renewed concerns about a no-deal Brexit as now the ministers believe both parties will fail to sign a post-Brexit trade deal. GBP plunged below 1.10 again currently trading at 1.0960.
Brexit, Covid & Economic Data
- If you have US Dollars or Euros to buy or sell please contact the desk. It's important to try and get the timing right with the Pound being very volatile and our desk can try and support to as best we can.
- The Media posted that the UK & EU stated a deal is some way off.
Please note, this can cause a negative impact for Sterling.
20th-24th July 2020
09:00 EU German IFO Business Climate
09:00 EU German Current Assessment
09:00 EU German Expectations
13:30 US Durable Goods Orders
15:30 US Dallas Fed Manufacturing Business Index
14:00 US S&P Case/Shiller Home Price Indices
15:00 US Consumer Confidence
15:00 US Pending Home Sales
19:00 US Interest rate Decision
19:00 US Fed's Monetary Policy Statement
07:00 EU German GDP
08:55 EU German Unemployment Rate
08:55 EU German Unemployment Change
09:00 EU Economic Bulletin
10:00 EU Consumer Confidence
10:00 EU Business Climate
10:00 EU Unemployment Rate
07:00 UK Retail Sales
08:30 EU German Markit Manufacturing PMI
09:00 EU Markit Manufacturing PMI
09:00 EU Markit PMI Composite
09:30 UK Markit Manufacturing PMI
14:45 US Markit Services PMI
15:00 US New Home Sales
IN OTHER NEWS
Retail sales continue to bounce back in June
UK retail sales continued their bounce back in June, as the reopening of shops released pent-up demand. The amount of goods sold last month increased by 13.9%, said the Office for National Statistics (ONS). The rise followed record falls in April and a partial recovery in May as the corona virus pandemic led to widespread shop closures and hit spending.
Sales were boosted by food stores, which reached new highs for the pandemic period. Compared to February, volumes of food sales were 5.3% higher while non-store retailing grew by 53.6%.