Gray Structure

18th September 2020

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar

GBP opened the week just above 1.2800 trying to re-gain all of it's losses from the previous week, after Boris announced that if the EU do not play ball with the UK's proposal, they will leave the EU with or without a trade deal. Last week the Pound reached a 10 month high of 1.3482 but collapsed after the Government announcement by -5.5%. This week, the Pound had a better start as the Dollar lost some safe-haven gloss on Monday due to renewed optimism over the discovery of a potential vaccine for Covid-19, also nerves flutter over FED's Interest rate decision on the Tuesday. By Mid-week, the Pound broke through the 1.30 region but didn't stay around this level for long, seeing the rest of the week tinkering around the 1.2900-1.2980 region.

The Pound is currently trading at 1.2965



 

Against the Euro

Against the Euro

GBP started the week at 1.0810 on Monday morning as Sterling saw big losses last week,  falling from 1.1275 to 1.0760 (-4.5%). The Pound this week found some steady upside strength as Markets Bill (IMB) cleared it's first hurdle despite 30 Conservative rebels voting against it. The bill now moves on to the committee stage where amendments can be made. The challenge for the markets will be deciding whether this Bill makes a no-deal Brexit more, or less likely. The Pound is currently trading at 1.0940.

Brexit, Covid & Economic Data

- Tuesday morning UK unemployment rate came in as expected at 4.1% whilst average earnings were a little better than forecast. (These figures do not take into account for people on Furlough)

- 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 September - 25th September  2020

Monday:

13:30 US Chicago Fed National Activity Index
N/A UK Inflation Report hearing

Tuesday:

08:30 UK BoE Governor Bailey Speech
11:00 UK CBI Industrial Trends Survey
15:00 US Existing Home Sales
15:00 US Fed's Chair Powell Speech
15:00 EU Consumer Confidence 


Wednesday:

07:00 EU German Consumer Confidence
08:30 EU German Markit Manufacturing
08:30 EU Markit Manufacturing PMI
09:00 UK Markit Manufacturing PMI
14:45 US Fed's Mester Speech
19:00 US Markit Manufacturing PMI
 

Thursday:
 

09:00 EU Economic Bulletin 
09:00 EU German IFO Business Climate
13:30 US Continuing Jobless Claims
13:30 US Initial Jobless Claims
13:30 US New Home Sales
14:00 UK BoE Gov Bailey Speech
19:00 US Fed's Williams speech

Friday:

13:30 US Durable Goods orders
13:30 US Non-defence Capital Goods orders

IN OTHER NEWS

Coronavirus: Tighter national rules considered by government
 

New England-wide measures which could see hospitality businesses forced to shut are being considered by the UK government to try to slow a second surge of coronavirus cases. A short period of national rules - a "circuit break" of a few weeks - could be announced in the next week, BBC political editor Laura Kuenssberg said.
 

Schools and most workplaces would be kept open during those weeks. But no final decisions have yet been reached on the next course of action.

Health Secretary Matt Hancock told Sky News a new national lock down was the "last line of defence" against coronavirus, but said the government would "take the necessary action to keep people safe".

Asked how close the nation was to such a measure, the health secretary said he could not give an answer.

At a meeting on Wednesday night, the government's chief scientific adviser and medical officer predicted another serious outbreak of the disease. They forecast that there would be a significant number of deaths by the end of October if there were no further interventions.

The possible measures being discussed include asking some hospitality businesses to close, or limiting the opening hours of some pubs and restaurants nationwide. The virus is now understood to be doubling every seven to eight days, with more than 3,300 new cases reported on Thursday.

BBC NEWS

Contact

dealing@arracofx.co.uk

00 44 (0) 208 065 4100

Visit Us

LinkedIn icon-23.png

Regulation

Arraco FX currency exchange services are provided by Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ.  The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199

Global Currency Exchange Network Limited T/A GC Partners is authorised by the Financial 

Conduct Authority under the Payment Services Regulations 2017, FRN 504346.
Registered as a Money Services Business, regulated by HM Revenue & Customs (“HMRC”) under the Money Laundering Regulations 2017. Registration number is 12137189. 
Registered in England and Wales, Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. Global Custodial Services Limited T/A 

 

GC Partners is authorised and regulated by the FCA and holds Part IV Permissions under the 

FSMA 2000. Registration number 595875 
Registered in England and Wales, Company number 08321940. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. 

ARRACO Global Markets Ltd (ACGM) Corporate Entity

Limited Company Registered in the UK with Companies House, registration number 09783536.  Registered Office: First Floor, Unit 2 Dolphin House, Riverside West, Smuggler's Way, Wandsworth, London SW18 1DF.  Regulated by the Financial Conduct Authority - authorisation code: FRN 719144​

Arraco FX red logo-03.png