Gray Structure

27th August 2020



Against the US Dollar

The Pound opened the week against the US Dollar at 1.3090, lingering around this 1.3050 to 1.3140 region on Monday. On Tuesday GBP found some strength as the safe-heaven Dollar started to slip over hopes that phase one Sino-American trade talks are back on track. GBP went through the 1.3150 by Tuesday night. On Wednesday, GBP made more advances against the greenback, as longer-term interest rates have been creeping into the U.S whilst shorter interest rates. This allowed the "Queens finest" (GBP) to breach through the 1.3200 level. Yesterday, with the Jackson Hole on the horizon for today, the Pound stayed firm and rallied into the 1.3250 region, with the main reason from U.S GDP data coming out lower than expected.


20th usd.JPG

Against the Euro

This week the Pound opened up against the Euro just above the 1.1100 area. From what looked like accumulative profit taking, the Pound dropped lower down to 1.1050 region. On Tuesday, GBP found some traction heading a little higher around the 1.1100 mark getting the sense of a new physiological level for Sterling. This could result in a positive outlook for the Pound, as it seemed not phased by the threat of Brexit talks. For the rest of the week, GBP pushed through the 1.1150 against the Euro as it awaits Bank of England's Haldane to speak today trading in a narrow trading band, given the extra strength.  

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.


Next week​

31st August - 4th September  2020

Monday: (Bank Holiday)

07:30 CHF Real Retail Sales
09:00 EU I.T Gross Domestic Product
13:00 EU German CPI


08:55 EU German Unemployment Rate
08:55 EU German Markit Manufacturing 
09:30 UK Markit Manufacturing 
13:55 US Markit Manufacturing 
14:00 US Housing Price
14:00 US Construction Spending


N/A UK Inflation Report Hearing

07:00 EU German Retail Sales
13:15 US ADP Employment Change
14:45 US ISM-NY Business Conditions Index
15:00 US Factory Orders
15:30 UK BoE's Haldene Speech
15:30 UK BoE's Broadbent Speech
19:00 US Fed's Beige Book


08:55 Markit Services PMI
09:00 EU Markit PMI Composite
10:00 EU Retail Sales
13:30 US Trade Balance
13:30 US Jobless Claims
14:45 US Markit PMI
15:00 US ISM Services Prices Paid


13:30 US Non-Farm Payroll
13:30 US Average weekly Hours
13:30 US Unemployment Rate


Hurricane Laura causes flash flooding as it makes landfall in Louisiana

Hurricane Laura has made landfall in the US state of Louisiana, causing flash flooding and leaving hundreds of thousands of homes without power.

It is one of the strongest to ever hit the US Gulf Coast, striking at category four with winds up to 150mph (240km/h). Laura's feared storm surge has so far reached 9ft (2.7m) in parts. It is still considered life-threatening and could spread 40 miles (65km) inland. Half a million residents have been told to leave parts of Texas and Louisiana. Where did Laura hit and what's its path?

Hurricane Laura made landfall shortly after midnight local time (05:00 GMT) near the district of Cameron, in Louisiana. It tracked north, just east of the Texas-Louisiana border.

Four hours later it had been downgraded to a category three storm, the National Weather Service (NWS) reported, before weakening again to category two. At 12:00 GMT maximum sustained winds were near 100 mph (160 km/h), with higher gusts.