Gray Structure

29th January 2021

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar

GBP/USD opened the week just below 1.3700, but pushing into this region in the early morning of trading. GBP has been strengthening off the back of the UK's Covid-19 vaccination programme's speed and better than expected economic data. The UK had higher inflation figures for December which traders are taking that as a sign of economic recovery. Through-out mid-week, the Pound has been fairly choppy moving up and down between 1.3650 and 1.3750, with Brexit issues seem to arise causing GBP to head lower from time to time. On Wednesday GBP hit 1.3760 which is the highest it's been since April 2018. GBP currently trading around 1.3680. 

Against the Euro

GBP opened against the Euro at 1.1245 seeing a steady start to the week. On Wednesday, GBP found some strength as ECB Knot's comments weighed on the Euro. Knot said that the ECB was keeping a watchful eye on the exchange rate and added that the central bank has tools to counter any further appreciation. This was also announced on the back of delays in the rollout of vaccines which prompted some heavy selling around the Euro. The pair reached 1.1347 on Wednesday afternoon, the highest it's been since May 2020. GBP managed to keep above the 1.1250 region throughout the rest of the week, currently trading at 1.1305.       

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​

1st - 5th February 2021

Monday:

07:00 EU German Retail Sales
08:55 EU German Markit Manufacturing PMI
09:30 UK Markit Manufacturing PMI
10:00 EU Unemployment Rate
14:45 US Markit Manufacturing PMI
15:00 US ISM Manufacturing PMI

Tuesday:

09:00 EU Gross Domestic Product
18:00 US Fed's Williams speech

Wednesday:

09:00 EU Markit Services PMI
10:00 EU CPI 
13:15 US ADP Employment Change
14:45 US Markit PMI Composite 
15:00 US ISM Services PMI

Thursday:

10:00 EU Retail Sales
12:00 UK BoE Monetary Policy Meeting
12:00 UK BoE MPC Vote Unchanged
12:00 UK BoE MPC Vote Cut
12:00 UK BoE MPC Vote Hike
12:00 UK BoE Interest Rate Decision
12:30 UK BoE's Governor Bailey Speech
13:30 US Continuing Jobless Claims
13:30 US Nonfarm Productivity 
13:30 US Factory orders



Friday:

07:00 EU German Factory orders
13:30 US Nonfarm Payrolls
13:30 US Unemployment Rate
13:30 UK BoE's Governor Bailey Speech

Contact

dealing@arracofx.co.uk

00 44 (0) 208 065 4100

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