Gray Structure

19th February 2021

HOW HAS THE POUND BEEN PERFORMING?

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Against the US Dollar

GBP/USD opened the week at 1.3875 pushing much higher, as a string of positive news was released from the UK. By lunch on Monday, the pair hit a 34 month high of 1.3915 as the Pound was supported by the BoE's neutral stance. The Pound to hit 1.3950 by Tuesday early morning due to the continuous fall in new coronavirus cases and the impressive pace of vaccinations; the UK has vaccinated 15 million vulnerable people, which is a quarter of the population. 

Mid-week, the Pound came off slightly moving below 1.3900 as Biden's proposed $1.9 trillion stimulus package allowed the US Dollar to find some short-term strength. 

This morning the Pound hit 1.4005 which marks a near 3 year high against the US Dollar, mainly driven by imminent phased lifting of lockdown measure in the UK. 

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Against the Euro

GBP opened against the Euro at 1.1440 seeing a gradual ascent for the Pound throughout the week. This was due to the fast UK vaccination process which is currently in place and the Bank of England ruling out negative interest rates (for now). 

Near-term, the economic outlook looks questionable, however the UK is vaccinating at a must faster pace than the rest of Europe. Combined with removed uncertainty from agreeing the Brexit deal, the UK is set to outperform the rest of Europe beyond Q1 2021.  

GBP hit a near 1 year high of 1.1571 yesterday currently trading at 1.1535.

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​

22nd - 26th February 2021

Monday:

00:00 EU German IFO Business Climate
00:00 EU German IFO Current Assessment
00:00 EU German IFO Expectations
N/A UK Prime Minister Boris Johnson Speech
13:30 US Chicago Fed National Activity Index

Tuesday:

07:00 UK Claimant Count
07:00 UK ILO Unemployment Rate
10:00 EU Consumer Price Index
14:00 US Housing Price Index
15:00 US Consumer Confidence

Wednesday:

07:00 EU German GDP
09:00 CHF ZEW Survey
15:00 US New Home Sales

Thursday:

00:00 EU Leaders Summit
07:00 EU German Gfk Consumer Confidence Survey
10:00 EU Consumer Confidence
10:00 EU Business Climate
13:30 US Durable Goods Orders
13:30 US Personal Consumption Expenditures (QoQ)(Q4)
13:30 US Jobless Claims
13:30 US GDP
13:30 US Nondefense Capital Goods Orders ex Aircraft
15:00 US Pending Home Sales
20:00 US Fed's Williams Speech

Friday:

00:00 EU Leaders Summit
08:00 CHF GDP
08:00 CHF KOF Leading Indicator
13:30 US Personal Consumption Expenditures (YoY)(MoM)
13:30 US Personal Income
13:30 US Personal Spending
14:45 US Chicago Purchasing Managers' Index
15:00 US Michigan Consumer Sentiment Index