Gray Structure

31 JULY 2020

HOW HAS THE POUND BEEN PERFORMING?

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Against the US Dollar

The Pound opened the week against the US Dollar at 1.2800 after breaking away higher from the previous week. As we know at the start of the month the Pound was trading around the 1.22 to 1.25 region, not really have any sense of direction. GBP this week managed to find some traction despite the UK Government announcing concern over local lock down in the North and on-going negative Brexit News, this was due to overall USD weakness. The Pound has gradually climbed higher throughout the week currently trading at 1.3130 with a +2% gain since Monday. This week, the UK has had very little data released in the economic docket but the US saw a worrying jobless claim figure coming out at over 17 million people (6%). 

 

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Against the Euro

The Pound has finally made a week's worth of gains against the Euro but still has no sense in direction. The Pound opened the week at 1.0960 trading around this level on Monday but managed to break through the 1.10 barrier on Tuesday. GBP buyers were unaffected by renewed fears of a no-deal Brexit, seeing GBP go higher. With all this in mind, GBP has hit these prices despite any significant progress on latest rounds of negotiations & the EU's €750 billion pandemic recovery fund GBP is trading at 1.1055. 

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.


- 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​

20th-24th July 2020

Monday: 

08:45 EU Italian Markit Man PMI
08:55 EU German Markit Man PMI
09:30 UK Markit Manufacturing PMI
14:45 US Markit Manufacturing PMI
15:00 US ISM Manufacturing Employment

Tuesday:

15:00 US Factory orders


Wednesday:

08:55 EU German Markit PMI
09:00 EU Markit Services PMI
10:00 EU Retail Sales
13:15 US ADP Employment Change
13:30 US Trade Balance 
14:45 US Markit Services PMI

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

British Airways owner IAG says recovery will not be before 2023

British Airways owner IAG has said it will take until at least 2023 for passenger levels to recover from the impact of the coronavirus pandemic. IAG, which also owns Aer Lingus, posted a loss of €4.2bn (£3.8bn) in the first half of the year as demand collapsed. Passenger numbers fell 98% in the April-to-June period, and the group has said it is planning to cut jobs. IAG said it planned to raise €2.75bn, and had support for this from its main shareholder, Qatar Airways.

However, its shares fell 6% to 170p in early trading on Friday.

 

BBC NEWS