HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
The Pound opened against the US Dollar just below 1.2650 pushing to fresh highs of 1.2667 in the early morning of trading. There was positive strength from the Pound, as last week it rose nearly 2% higher from the approval of Rishi's mini-budget on Wednesday. This didn't last long as the Pound got hit hard, pushing down to 1.2540 by Monday close. On Tuesday morning the Pound went lower, but hit a support level of 1.2480 by lunchtime as the UK released some more disappointing GDP figures showing in May, the economy expanded 1.8% which it expected around 5%. (see chart)
On Wednesday, the UK released their CPI data which came out upbeat. This pushed the Pound higher towards 1.2650 again, with the help of corona virus vaccine hopes which benefited the Pound. For the rest of the week the Pound carried on being very up and down mainly driven by the media. Rate is currently 1.2550.
Against the Euro
This week, the Pound opened against the Euro at 1.1175 after having a strong turn around against the Euro last week bouncing back from 1.0900. This didn't last long, as the Pound started tumbling lower as Brexit negotiations and negative rate talks from the Bank of England limited any upside for the Pound. Ireland's Coveney mentioned a Brexit deal is more likely, but warned there is a lot of work needed first seeing the rate down to 1.0975 by Tuesday. For the rest of the week, the Pound traded around 1.10 region not having any real direction. The rate is currently 1.1010.
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 and our desk can try and support to as best we can.
- Next week on Friday the UK has important PMI figures which could affect the rate considerably. Please contact our desk for any Currency you may have in the pipeline to trade.
Please note, this can cause a negative impact for Sterling.
20th-24th July 2020
07:00 EU German Producer Price Index
09:30 UK Public Sector Borrowing
13:30 US Chicago Fed National Activity
14:00 US Housing Price Index
15:00 US Existing Home Sales
07:00 UK Gfk Consumer Confidence Survey
13:30 US Continuing Jobless Claims
13:30 US Initial Jobless Claims
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%.