Gray Structure

18th December 2020

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar


On Monday, the pair opened just above 1.3300 creeping higher towards 1.3450 by lunchtime as EU's Chief Brexit negotiator Barnier expressed his optimism on a deal with the UK. GBP didn't last long around these levels, as the UK decided to push the rest of the country into tier 3 lockdown as a "new variant" of Covid had been spreading in London. GBP had strong support around 1.3300 and manged to climb back up higher to 1.3556 which was the highest level since May 2018 as the PM's spokesperson said that they have made some progress in some areas and their position is that they want to reach a Free trade agreement which can still be likely. On Thursday, Sterling carried on it's strength pushing to new highs of 1.3620 as Barnier mentioned a deal is possible by Friday. 

Against the Euro

GBP had a less eventful time against the Euro comparing to the US Dollar, but managed to find some gradual strength higher. The pair hit 1.1131 which is December high's, after positive UK Brexit news came out this week from European Commission President Ursula claimed that there was a "path to an agreement". GBP managed to climb 0.75% through the week with Brexit deadline on the horizon.

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, our desk can try and support to the best we can.

- On going meetings/negotiations with the UK & EU will fluctuate the Pound.


Please note, this can cause a negative impact for Sterling.

ECONOMIC CALENDAR

Next week​

21st December - 24th December 2020

Monday:

13:30 US Chicago Fed National Activity
15:30 EU Consumer Confidence 

Tuesday:

07:00 UK Gross Domestic Product
07:00 EU German Consumer Confidence 
13:30 US Core Personal Consumption 
13:30 US Gross Domestic Product

Wednesday:

07:00 EU Swiss ZEW Survey 
13:30 US Personal Income
13:30 US Personal Spending
15:00 US Michigan Consumer Sentiment
13:30 US New Home Sales

Thursday:

13:30 US Durable Goods Orders
13:30 US Non-defence Capital goods




Friday:

All day: Christmas Day
 

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dealing@arracofx.co.uk

00 44 (0) 208 065 4100

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