Gray Structure

27th November 2020

HOW HAS THE POUND BEEN PERFORMING?

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Against the US Dollar

After more gains last week, the Pound opened on Monday again in a strong position, trading above the 1.3300 level. By mid-day on Monday, Sterling managed to accelerate its uptrend from mid-November lows at 1.3100, reaching to 1.3397 by Monday lunchtime. This resulted from the positive Vaccine news and renewed hopes of a Brexit deal with the EU have fuelled the Pound's demand. GBP fell back after the Monday spike but maintained a position bouncing around the 1.33-1.34 region. The pair today will have eyes on what Brexit talks are happening over the weekend, looking like no progress in fisheries talks, which is the key hurdle for the Brexit trade deal.

 

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Against the Euro

After a positive week last week, GBP managed to carry on it's run see the pair hit 1.1277 by Monday afternoon. During mid-week, GBP didn't manage to carry on it's gains but held firmly around the 1.12-1.1240 for the rest of the week as Sterling waits for Brexit talk happening over the weekend. Despite the UK's spending review being released by Rishi Sunak this week and with a near 400 Billion in borrowings, the Pound has kept it's head high, current rate 1.1210.

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​

30th November - 4th December 2020

Monday:

10:00 US OPEC Meeting
13:30 EU German CPI
13:30 EU German Harmonized Index of Consumer Prices
14:30 UK BoE's Tenreyro Speech
14:45 US Chicago Purchasing Manager
15:00 US Pending Home Sales


Tuesday:

07:00 EU Ecofin
08:55 EU German Unemployment Rate
08:55 EU German Unemployment Change
08:55 EU German Unemployment Rate
09:30 UK Markit Manufacturing PMI
10:00 EU CPI
15:00 US ISM Manufacturing PMI



Wednesday:

07:00 EU German Retail Sales
10:00 EU Producer Price Index
10:00 EU Unemployment Rate
12:00 US ADP Employment Change
18:00 US Fed's Williams Speech

Thursday:

08:55 EU German Markit Services PMI
09:00 EU Markit Services PMI
10:00 EU Retails Sales
13:30 US Continuing Jobless claims
13:30 US Initial Jobless Claims
15:00 US ISM Services PMI

Friday:

10:00 EU Consumer Confidence
10:00 EU Business Climate