HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
The Pound opened against the US Dollar just under 1.2500, climbing higher on Monday. With little data out from the UK, the US released their PMI results which came out much better than expected, but despite this, the Pound went higher to 1.2525. On Tuesday, the Pound rallied towards 1.2600 as the Tories had positive talks with the EU, increasing the chance of a deal. Chancellor Sunak for the UK, announced another multi-billion push to the economy on Wednesday allowing Sterling to break through 1.2600 by close of play, seeing a 5-day rise for Sterling with an overall high of 1.2670. This morning, the Pound fell lower below 1.26 as UK's Business Secretary Alok Sharma walked away from the EU Corona virus vaccine scheme, added a negative impact on Sterling.
Against the Euro
This week the Pound opened against the Euro just below 1.1100 falling lower in the morning down to 1.1025 but managed to pull back up higher. The Pound found some strong support on the back of Sunak's 30 Billion stimulus package on Wednesday. This was also added with optimism over a possible breakthrough in the post-Brexit negotiations. Recent reports have indicated that both parties have come close to finding common ground on the issue of fishing rights which the Pound hit levels of 1.1150 and further to month highs of 1.1180 yesterday. Today the pair is trading at 1.1170 with no UK or EU economic data out today.
Brexit, Covid & Economic Data
Rishi's Plan
- Stamp Duty Holiday up to £500K property purchases.
- Energy Saving & meal vouchers
- No VAT for Hospitality
- Bring back furlough scheme
- Kick start scheme for 16-25 with Long term job risk & much more
The Pound is up higher this week from month lows. If you are a Euro or US Dollar buyer please speak with the Arraco Dealing team.
ECONOMIC CALENDAR
Next week
13th-17th July 2020
Monday:
09:00 EU German IFO Business Climate
09:00 EU German Current Assessment
09:00 EU German Expectations
13:30 US Durable Goods Orders
15:30 US Dallas Fed Manufacturing Business Index
Tuesday:
14:00 US S&P Case/Shiller Home Price Indices
15:00 US Consumer Confidence
Wednesday:
15:00 US Pending Home Sales
19:00 US Interest rate Decision
19:00 US Fed's Monetary Policy Statement
Thursday:
07:00 EU German GDP
08:55 EU German Unemployment Rate
08:55 EU German Unemployment Change
09:00 EU Economic Bulletin
10:00 EU Consumer Confidence
10:00 EU Business Climate
10:00 EU Unemployment Rate
Friday:
07:00 UK Retail Sales
08:30 EU German Markit Manufacturing PMI
09:00 EU Markit Manufacturing PMI
09:00 EU Markit PMI Composite
09:30 UK Markit Manufacturing PMI
14:45 US Markit Services PMI
15:00 US New Home Sales
IN OTHER NEWS
Retail sales continue to bounce back in June
UK retail sales continued their bounce back in June, as the reopening of shops released pent-up demand. The amount of goods sold last month increased by 13.9%, said the Office for National Statistics (ONS). The rise followed record falls in April and a partial recovery in May as the corona virus pandemic led to widespread shop closures and hit spending.
Sales were boosted by food stores, which reached new highs for the pandemic period. Compared to February, volumes of food sales were 5.3% higher while non-store retailing grew by 53.6%.
BBC NEWS
