Gray Structure

4th September 2020

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar

TThe Pound had a fantastic start the week against the US Dollar despite it being a UK Bank holiday - the Pound just cut short of hitting 1.3400. This level is the highest level since 16th December 2019 showing good strength from the Pound during these unprecedented times. On Tuesday, the Pound kept strong, hitting through the 1.3450 region heading towards 1.3500 which would be the highest it has been since May 2018 (2 years - 4 months). The upbeat buying for Sterling was mixed from the selling of the safe - haven greenback (u.s dollar) with also positive mortgage approvals, with UK house prices higher by 0.5%, despite Brexit and current affairs with Covid. 

GBP fell lower after buyers sold their positions seeing the Pound go to 1.3300 from the high of 1.3486 


 

Against the Euro

GBP opened just above 1.1200 against the Euro seeing Sterling head towards 1.1150 on Bank holiday Monday. The Pound managed to push above the 1.1200 region mid-week despite negative Brexit news published this week. GBP has managed to keep higher above it's rival, despite the on-going talks on Britain leaving the European Union seeing GBP reach 1.1278 as the high for the week on Wednesday. Sterling is currently trading at  1.1227 trying to push through the 1.1250 region again.

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​

7th September - 11th September  2020

Monday: (Bank Holiday)

All day: U.S Labour Day
07:00: EU German Industrial Production
23:01 UK Like-for-Like Retail Sales 

Tuesday:

07:00 EU German Trade Balances
10:00 EU Employment Change
10:00 EU Gross Domestic Product

All day: UK Inflation Report Hearing


Wednesday:

All day: EU German 10-Y Bond Auction

Thursday:
 

12:45 EU ECB Interest Rate Decision
13:30 US Producer Price Index
13:30 US Initial Jobless Claims
13:30 EU Monetary Policy Statement & Press

Friday:

07:30 UK Industrial Production
07:00 UK Gross Domestic Product
07:00 EU German CPI
13:30 US Consumer Price Index
18:00 US Monthly Budget Statement

IN OTHER NEWS

Coronavirus quarantine rules: Differences across UK 'confusing', Grant Shapps says

Differences in UK quarantine rules are "confusing" for travellers, Grant Shapps has admitted, as the devolved nations take varying approaches to international travel.

The transport secretary acknowledged people's frustrations, as Scotland and Wales asked arrivals from Portugal and parts of Greece to isolate, but England and Northern Ireland held off.

Wales' rules, including only six Greek islands, began at 04:00 BST on Friday.

Travel firms called for urgent clarity.

Some holidaymakers from England say they have spent huge amounts of money to avoid quarantine that, for now, will not be in place.

While Wales' advice has already changed, arrivals to Scotland from Portugal and French Polynesia will also have to self-isolate from 04:00 on Saturday. Scotland has already reintroduced quarantine for arrivals from Greece.

Portugal, Greece and French Polynesia are still on England and Northern Ireland's lists of travel corridors.

 

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