Gray Structure

8th January 2021

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar

On Monday to start the New Year of 2021, the Pound fell from the skies as Sterling faced an early reality check. GBP was flirting around the 1.3700 region as investors continued pushing the Pound higher after the EU and the UK reached a Brexit deal on Christmas Eve. The UK's new contagious strain with the pandemic has weighed on Sterling with London and other parts of the country going into the new tier 5 lockdown seeing prices fall to 1.3540. Mid-week, GBP managed to find some steady upswing, as Boris mentioned the rollout of the vaccine to the UK, trying to tackle it aggressively. GBP today is still lingering around the 1.3550 and 1.3600 region, awaiting some positive news.  

Against the Euro

GBP/EUR entered the New year falling lower after GBP managed to nearly hit the 1.1200 region at the end of December 2020. Investors looked past the Brexit trade deal optimism with the fact that the Brexit agreement won't apply to the UK services sector which makes up 80% of the British Economy. This held back GBP bull investors from placing new bets on Sterling. GBP throughout the week held firm around 1.1050 but no real direction from an unprecedented level of COVID-19 infection in the UK. The pair is currently trading around the 1.1100 region.

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​

11th January - 15th January 2021

Monday:

14:00 UK BoE's Tenreyro speech
15:00 UK BoE's Governor Bailey speech 

Tuesday:

00:01 UK BRC Like for Like sales
10:00 UK BoE's Broadbent Speech

Wednesday:

10:00 EU Industrial Production
13:30 US CPI
19:00 US Monthly budget statement
19:00 US Fed's Beige Book

Thursday:

13:30 US Retail Sales
13:30 US Continuing Jobless Claims
13:30 US Retail Sales
13:30 US Retails Sales Control Group



Friday:

07:00 UK Trade Balance
07:00 UK Manufacturing Production
07:00 UK Goods Trade Balance
07:00 UK Gross Domestic Product
07:00 UK Manufacturing Production
13:30 US Producer Price Index
15:00 US Michigan Consumer Sentiment

Contact

dealing@arracofx.co.uk

00 44 (0) 208 065 4100

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