HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
GBP/USD opened the week just above 1.3700 shooting up to yearly highs of 1.3760 as UK's manufacturing PMI's came out much better than expected. This didn't last long, as a broad US Dollar strength pushed prices down to 1.3565 by Thursday morning. Joe Biden met a group of ten republican senators that offered a stimulus plan worth $600 Billion - less than a third of his $1.9 trillion package. On Thursday. the BoE gave their vote on the UK's interest rate decision all 9 voting unchanged and a bullish talk stating their projected GDP to recover rapidly towards pre-pandemic levels over 2021 and inflation to rise quite sharply towards the 2% target in spring. The Pound shot up higher back to 1.3700 where it's currently lingering around looking for more reason to push further.
Against the Euro
GBP opened against the Euro at 1.1295 seeing a steady range throughout the first half of the week, between 1.1280 & 1.1350. With mixed economic figures coming out early on in the week from the EU and UK this kept the pair within the above range. On Thursday, the BoE voted 9 out of 9 for unchanged interest rates with a strong & bullish prediction on the 2021 UK recovery which allowed GBP to push much higher above 1.14. This is the first time we have seen the pair reach this level since May 2020. Pair is currently trading at 1.1435.
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
8th - 12th February 2021
Monday:
06:45 CHF Unemployment Rate
07:00 EU German Industrial Production
Tuesday:
07:00 EU German Trade Balance
Wednesday:
07:00 EU German CPI
07:00 EU German Harmonized CPI
N/A UK NIESR GDP Estimates
13:30 US CPI
17:00 UK BoE's Gov Bailey Speech
19:00 US Monthly Budget Statement
Thursday:
13:30 US Continuing Jobless Claims
Friday:
07:00 UK Trade Balance
07:00 UK Manufacturing Production
07:00 UK Industrial Production
07:00 UK Good Trade Balance
07:00 UK GDP
10:00 EU Industrial Production
15:00 US Fed's William's Speech
15:00 US Michigan Consumer Sentiment
