Gray Structure

6th November 2020

HOW HAS THE POUND BEEN PERFORMING?

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Against the US Dollar

GBP opened on Monday morning trading just above 1.2900 before taking a slight dip to 1.2857 and moving between the range for most of the day. GBP broke 1.3000 as the US Election results started to filter through on Tuesday which set the Dollar down a bumpy road as Donald Trump & Joe Biden battled for key states in their claim for the White House. As the week progressed it was clear that the US Election was too close to call with delays in postal votes creating market uncertainty and prevented the Dollar from finding stable ground. On Thursday the BoE announced that they would expand the UK's current QE by a further £150 billion which continued to provide support for the Pound against the Greenback and as of this morning GBP/USD has broken the 1.3150 level as markets wait for US election clarity and pending NFP figures.

 

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Against the Euro

GBP started the week around 1.1070 on Monday morning before briefly breaking the 1.1100 barrier due to some slightly better than expected UK manufacturing data and moved between the range for most of the day. The weeks main focus was the UK transitioning back into a national lock down on Thursday with whispers in Westminster that the 4 week lockdown could be extended. This was backed up by Chancellor Rishi Sunak who stated he will now extend the UK's furlough scheme until March 2021.

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​

9th November - 13th November 2020

Monday:

08:00 EU German Trade Balance (Sep)
11:35 UK BoE's Governor Bailey speech
15:00 UK BoE's Haldane speech

Tuesday:

01:01 UK BRC Like-for-Like Retails Sales (YoY)(Oct)
08:00 UK Claimant Count Rate (Oct)
08:00 UK Claimant Count Change (Oct)
08:00 UK ILO Unemployment Rate (3Mo)(Sep)
08:00 UK Average Earnings Including Bonus (3Mo/Yr)(Sep)
08:00 UK Average Earnings Excluding Bonus (3Mo/Yr)(Sep)
11:00 EU ZEW Survey - Economic Sentiment (Nov)

Wednesday:

N/A: UK NIESER GDP Estimate (3Mo)(Oct)

Thursday:

08:00 UK Industrial Production (MoM)(Sep)
08:00 UK Gross Domestic Product (QoQ)(Q3) prel
08:00 UK Manufacturing Production (YoY)(Sep)
08:00 EU German Harmonized Index of Consumer Prices (YoY)(Oct)
09:00 UK BoE's Governor Bailey speech
10:00 EU Economic Bulletin
11:00 EU Industrial Production s.a. (MoM)(Sep)
14:30 US Continuing Jobless Claims (Oct 30)
14:30 US Initial Jobless Claims (Nov 6)
14:30 US Consumer Price Index (YoY)(Oct)
14:30 US Consumer Price Index ex Food & Energy (YoY)(Oct)
20:00 US Fed's Williams speech
20:00 US Monthly Budget Statement (Oct)

Friday:

08:00 EU EcoFin Meeting (All Day)
11:00 EU Gross Domestic Product (YoY)(Q3) prel
13:00 US Fed's Williams speech
14:30 US Producer Price Index ex Food & Energy (YoY)(Oct)
15:00 UK BoE's Tenreyro speech
16:00 US Michigan Consumer Sentiment Index (Nov) prel
17:00 UK BoE's Governor Bailey speech