Gray Structure

9th October 2020

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar

GBP opened the week at 1.2950 seeing GBP climb towards the 1.30 region on Monday and Tuesday morning. The only topic that was driving the market this way was President Donald Trump's health which allowed Sterling to hit near 1 month highs of 1.3008. This was reversed, as Trump quickly pulled the plug on the fiscal stimulus talks allowing the safe heaven Dollar to strengthen, seeing the rate drop below 1.2900. On Thursday, GBP managed to pull itself back above 1.2900, as Wednesday's nights vice-presidential TV debate ended in a no-score draw with markets also reacting to Trump's backtracking on his call to end fiscal stimulus talks, bringing the Pound back up to 1.2950 this morning.

This morning, the UK released their GDP which came in at 2.1% but market predictors expected 4.6%. Sterling managed to hold itself despite this poor economic data.


 

Against the Euro

GBP started the week just above 1.1040 on Monday morning, as news over the weekend benefitted from optimism on the chances of a Brexit deal after last Boris's call with Ursula von der Leyen. The Pound fell just below the 1.10 region, as Brexit talks are up and down with the self-imposed deadline of 15th October for a trade deal closing in. Michael Gove told the Brexit committee that there is a 60% chance of a trade deal, despite all of this the Pound has been trading between 1.0920 and 1.1040 this week.   

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​

12th October - 16th October 2020

Monday:

15:00 UK BoE's Haskel Speech
17:00 UK BoE's Gov Bailey speech
23:50 UK BRC Like for Like R-Sales

Tuesday:

07:00 UK Claimant Count
07:00 UK Claimant Count Change
07:00 UK Average Earnings
07:00 EU German CPI
10:00 EU ZEW Survey
13:30 US CPI

Wednesday:

10:00 EU Industrial Production
14:00 UK BoE's Haldane Speech
 

Thursday:

13:30 US Continuing Jobless Claims
13:30 US Initial Jobless Claims

Friday:

10:00 EU Trade Balance
10:00 EU CPI
13:30 US Retail Sales

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