3 JULY 2020
HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
The Pound opened against the US Dollar at 1.2340 heading lower to start the week as the Brexit saga continues to negativity affect the Pound. The UK and EU re-met on Monday discussion trade agreements which seemed that the UK had not responded to all of the EU's questions making the Pound head lower to 1.2250. With speculative rumours about negative interest rates here in the UK also caused the Pound to head south ending Monday at new month lows. On Tuesday afternoon, the Pound managed to find some strength during the American session after the Dollar Index (DXY) turned negative for the day seeing the Pound jump to 1.2400 (+2%) by Tuesday evening. During mid-week, the Queen's finest managed to keep climbing higher amid overall selling on the US Dollar where the Pound topped at 1.2526 for the high on Thursday. GBP/USD is currently trading just below 1.2500
Against the Euro
This week the Pound opened against the Euro just below 1.1000 heading lower straight to 1.0900 which is a 4-month low. The dramatic drop was concluded around the impact of the corona virus pandemic on the UK economy as well as uncertainty surrounding Brexit talks and negative interest rates. The UK released some poor PMI figures but despite this the overall come back form the Pound pushed prices back above the 1.10 region against the Euro seeing a high on Thursday of 1.1101. Current price is just below the 1.11 region.
Brexit, Covid & Economic Data
Please note, Politics and Economics are both setting a main driver for the Pounds movements much more than other currencies. We may see some more volatility across the next few months especially if the UK's economic figures come out poor, bringing a negative impact on the Pound.
The Pound is up higher this week from month lows. If you are a Euro or US Dollar buyer please speak with the Arraco Dealing team.
29th June - 3rd July 2020
07:00 EU German Factory Orders
10:00 EU Retail Sales
14:45 US Markit Services PMI
14:00 ISM Non-Manufacturing New Orders
07:00 EU German Industrial production
10:00 EU European Commission
07:00 EU German Exports
13:30 Continuing Jobless Claims
13:30 US Initial Jobless Claims
08:00 Ecofin Meeting
12:30 US Producer Price Index
IN OTHER NEWS
Café Rouge and Bella Italia owner falls into administration
The owner of High Street restaurant chains Café Rouge and Bella Italia has gone into administration.
Ninety-one Casual Dining Group outlets will close immediately, and 1,900 of the firm's 6,000 staff will lose their jobs. Administrators Alix Partners are seeking offers for all, or parts, of the remaining business.
UK firms have announced thousands of job cuts this week as the impact of the pandemic on the economy continues. Casual Dining Group, which also owns the Las Iguanas chain, applied in May to appoint administrators at the High Court as it found it increasingly hard to pay its rents.