HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
GBP/USD opened the week pushing down to multi-day lows on Monday morning to 1.3520. This was due to concerns about the potential economic fallout on continuous surge in the number of new Covid-19 cases. The Pound quickly changed course, as the UK have been making good head-way on the vaccinations being distributed to the elderly, giving more certainty for the UK reaching 1.3720 by Wednesday. GBP dipped down to 1.3650 briefly, as Joe Biden took his oaths of office seeing the Dollar strengthen. This didn't last long, as GBP managed to push back higher, hitting near 3-year highs of 1.3745.
Against the Euro
GBP opened against the Euro just below the 1.1250 region seeing a very quiet start to the week. The pair moved in a 40 pip range between 1.1200 and 1.1240 for the first part of the week. This was a "media ping pong" situation with positives and negatives coming out daily for both counterparties, giving Sterling no sense of direction. Yesterday, GBP moved to 8 month highs of 1.1330 due to a rapid decrease of COVID cases in the UK. These levels didn't last long thought, seeing GBP fall back down to 1.1250 levels this morning.
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
25- 29th January 2021
Monday:
09:00 EU German IFO Business Climate
09:00 EU German IFO Current Assessment
09:00 EU German IFO Expectations
Tuesday:
07:00 UK Claimant Count Rate
07:00 UK ILO Unemployment Rate
07:00 UK Average Earnings Ex Bonus
14:00 US Housing Price Index
15:00 US Consumer Confidence
Wednesday:
13:30 US Durable Goods
19:00 US FED Interest Rate Decision
19:00 US FOMC Press Conference
19:00 US FED Monetary Policy Statement
Thursday:
10:00 EU Services Sentiment
10:00 EU Consumer Confidence
10:00 EU Business Climate
13:00 EU German CPI
13:30 US Continuing Jobless Claims
13:30 US GDP
13:30 US Initial Jobless Claims
15:00 US New Home Sales
Friday:
08:55 EU German Unemployment Rate
09:00 EU German GDP
13:30 US Personal Consumption Expenditure
13:30 US Personal Income
14:45 US Chicago Purchasing Managers
