Gray Structure

11th September 2020

HOW HAS THE POUND BEEN PERFORMING?

Against the US Dollar

After GBP managed to reach 10-month highs of 1.3485, the Pound has slipped much lower due to Brexit related news. On Monday this week, GBP/USD opened up at 1.3250 pushing lower to start the week. With the help from US president Trump after he stated, "we're going to end our reliance on China", bringing investors towards the US Dollar making Sterling fall. Alongside this, UK PM Boris stated that the withdrawal agreement is "a bit ambiguous" and may need re-writing, bringing huge tensions between the UK & EU. Mid-week, GBP managed to fall considerably moving to a near 2-month lows of 1.2770 this morning which is a whopping -5.00% loss over 1 week.


 

Against the Euro

GBP started the week at 1.1200 on Monday morning seeing a gradual decline throughout the whole week. It's been a hectic week for the pair due to Brexit talks getting slightly out of hand from Boris stating that he is threatening to cut off negotiations by 15th October if there is no progress. The European Union says "the British are not negotiating". On these statements, the Pound all the way down to 1.0787 by yesterday afternoon seeing a -3% fall for just this week of trading. The pair hasn't see these levels since mid corona crash, and it will be interesting to see if GBP can recover after these current Brexit related statements. 

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​

14th September - 18th September  2020

Monday:

All day: UK Inflation Report Hearing
All day: UK Parliamentary vote on Brexit
10:00 EU Industrial Production

Tuesday:

07:00 UK Claimant count
07:00 UK ILO Unemployment Rate
07:00 UK Average Earnings Rate
10:00 EU ZEW Survey
10:00 EU Labour Costs
10:00 German ZEW Survey
13:15 US Industrial Production


Wednesday:

07:00 UK CPI
07:00 UK Retail Price Index
07:00 UK Producer Price Index
13:30 US Retail Sales
19:00 US FOMC Economic Projections
19:00 US Fed Interest Rate decision
19:00 US FOMC Press conference
All day: EU German 10-Y Bond Auction

Thursday:
 

10:00 EU CPI
12:00 UK BoE MPC Vote
12:00 UK Monetary Policy Summary
12:00 UK BoE Vote cut
12:00 UK BoE Minutes
12:00 UK BoE Interest Rate decision
13:30 US Building Permits
13:30 US Jobless claims
13:30 US Initial Jobless claims

Friday:

07:00 UK Retail Sales
15:00 US Michigan Consumer Sentiment Index

IN OTHER NEWS

UK economy continues recovery in July

The UK economy grew by 6.6% in July, according to official figures, but output remains far below pre-pandemic levels.

It is the third month in a row that the economy has expanded.

But the Office for National Statistics (ONS), said that the UK "has still only recovered just over half of the lost output caused by the coronavirus".

Hairdressers, pubs and restaurants contributed to growth after companies were allowed to reopen in July.

However, the UK's economy is still 11.7% smaller than it was in February and growth in July was smaller than the 8.7% expansion seen in June.

Thomas Pugh, UK economist at Capital Economics, said the reopening of restaurants and pubs meant the accommodation and food services sector "rose by a whopping 140.8%" between June and July.

 

BBC NEWS

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