Gray Structure

19th March 2021

HOW HAS THE POUND BEEN PERFORMING?

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Against the US Dollar

GBP/USD opened the week at 1.3928. This week traders had been awaiting the MPC decision on the interest rate for the BOE explaining some volatility in the market this week. The pound fell 0.50% against the dollar on Tuesday, but recovered at the US open on the 17th, shrugging off concerns of a vaccine shortage. The market correctly expected a 9-0 split on the MPC vote but awaited for the minutes to hear their sentiment on inflation and opinions on the current state of the economy. They left the £895bn QE programme unchanged and remain cautious on the outlook of economic recovery. The pair closed the 18th this week sitting comfortably above the 1.39 mark, as the dollar slid as Powell announced that he did not expect interest rates to rise any time soon, keeping borrowing costs near zero until 2023.

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Against the Euro

GBP opened against the Euro at 1.1655, seeing a sudden spike on Monday morning. The pair saw a new 2021 high of 1.1706 on Wednesday. For this pair, the EU's sluggish vaccine rollout has been more important than central banks reports, as traders awaited the EMA report on the safety of the AZ/Oxford vaccine. Divergence rates in vaccine delivery has been a key driver informing GBPEUR as it ended Thursday at 1.1650.

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.


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

ECONOMIC CALENDAR

Next week​

22nd March - 26th March 2021

Monday:

12:30 US Chicago Fed National Activity Index
13:00 US Fed's Chair Powell Speech
17:00 US Fed's Daly Speech
17:30 US Fed's Quarles Speech
23:15 US Fed's Bowman Speech

Tuesday:

07:00 UK Claimant Count Rate & Change
07:00 UK ILO Unemployment Rate
07:00 UK Average Earnings
09:55 UK BoE's Cunliffe Speech
11:50 UK BoE's Governor Bailey Speech
14:00 US New Home Sales
16:00 US Fed's Chair Powell Tesifies
18:45 Fed's Williams Speech

Wednesday:

07:00 UK Consumer Price Index
07:00 UK Retail Price Index
07:00 UK PPI Core Output
07:00 UK Core Consumer Price Index
07:00 Retail Price Index
07:00 UK PPI Core Output
08:30 EU German Markit PMI
09:00 EU Markit PMI
09:30 UK Markit PMI
12:30 US Durable Goods Orders
12:30 US Non-defence Capital Goods Orders 
12:30 US Markit PMI
15:00 EU Consumer Confidence
16:00 Fed's Chair Powell Testifies
17:35 US Fed's Williams Speech
N/A EU German 10-y Bond Auction

Thursday:

00:00 EU European Council Meeting
07:00 EU Gfk Consumer Confidence Survey
08:30 CHF SNB Interest Rate Decision
08:30 CHF SNB Monetary Policy Assessment
09:00 EU Economic Bulletin
09:30 US Fed's Williams Speech
09:30 US BoE's Governor Bailey Speech
12:30 US Personal Consumption Expenditures
12:30 US Continuing Jobless Claims
12:30 GDP Price Index
12:30 US Initial Jobless Claims
12:30 US GDP Annualised
14:30 US Fed's Williams Speech

Friday:

00:00 EU Council Meeting
07:00 UK Retail Sales
09:00 EU German IFO - Business Climate
09:00 EU German IFO - Current Assessment
09:00 EU German IFO - Expectations
12:30 US Personal Consumer Expenditure
12:30 US Personal Income
12:30 US Personal Spending
14:00 US Michigan Consumer Sentiment Index