Gray Structure

27th August 2020

HOW HAS THE POUND BEEN PERFORMING?

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.



 

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.

ECONOMIC CALENDAR

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

Tuesday:

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


Wednesday:

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

Thursday:
 

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


Friday:

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

IN OTHER NEWS

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.

 

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