HOW HAS THE POUND BEEN PERFORMING?
Against the US Dollar
The Pound opened the week against the US Dollar at 1.3070, edging higher towards 1.31 on Tuesday despite anticipation of UK's expected negative GDP to be released on Wednesday morning. By Tuesday mid-day, the Pound reached 1.3130 with overall US Dollar weakness driving this move. On Wednesday, the UK released their figures in the GDP department which came out better than expected but the economy still contracted by -21.7% seeing cable move down to 1.3005 where there was plenty of support for the Pound. Considering the UK is now in an economic recession as two consecutive quarters have shown negative growth, the Pound did well holding up and not falling into the 1.20's region. The Pound is currently trading at 1.3055 for this Friday morning.
Against the Euro
This week the Pound opened up against the Euro just above 1.1070 edging higher on Monday pushing back into the 1.1100 region reaching a 4-week high of 1.1148. These levels didn't last long due to the UK going into one of the deepest recessions due to the Covid pandemic which pushed prices down to 1.1045. More encouraging was the stronger than expected recovery in recent months which showed the latest monthly GDP report revealed that activity started to rebound more robustly by 8.7% in June following an upwardly revised expansion of 2.4% May. Sterling, with all things considered has held it's value with the intention of the third quarter projections of a substantial recovery. Sterling has has a spike this morning currently trading at 1.1070 (0.9033)
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.
17th August - 21st August 2020
00:00 EU Euro group Meeting
12:30 US Building Permits
12:30 US Housing Starts
07:00 UK Retail Price Index
07:00 UK PPI Core
07:00 UK Consumer Price Index
09:00 EU Consumer Price Index
18:00 US FOMC Minutes
10:00 UK CBI Industrial Trends
11:30 ECB Monetary Policy Meeting Accounts
12:30 US Continuing Jobless Claims
12:30 US Initial Jobless Claims
07:00 UK Retail Sales
07:30 EU German Markit Manufacturing PMI
09:00 EU Markit Manufacturing PMI
13:45 US Markit Services PMI
15:00 EU Consumer Confidence
IN OTHER NEWS
Beirut explosion: Anti-government protests break out in city
Protesters clashed with Lebanese security forces at anti-government demonstrations in Beirut on Thursday.
Officers deployed tear gas on dozens of people near parliament. Demonstrators were angered by Tuesday's devastating blast, which officials say was caused by 2,750 tonnes of ammonium nitrate stored unsafely since 2013. Many in Lebanon say government negligence led to the explosion, which killed at least 137 people and injured about 5,000 others.
The explosion destroyed entire districts in the capital, with homes and businesses reduced to rubble. Dozens of people are still unaccounted for.