Gray Structure

15th January 2021

HOW HAS THE POUND BEEN PERFORMING?

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Against the US Dollar

GBP opened the week pushing lower to a 3-week low against the US Dollar, in the build up the BoE's speculation that the UK would introduce negative interest rates. BoE's Spokesman Tenreyro, mentioned he had nothing new to add on this subject but mentioned possible stimulus package will be needed. On Tuesday, BoE's governor Bailey said that Britain's economy was facing its "darkest hour" and played down the suggestion of cutting interest rates below Zero. GBP rocketed on the back of this statement, pushing the rate to 1.3702 by Wednesday afternoon. The pair remains trading around the 1.3650 region. Last night, Biden said "No time to waste" as he unveils $1.9trillion coronavirus stimulus package.    

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Against the Euro

GBP opened against the Euro below the 1.1100 region as negative speculation was lingering around the Pound on Negative Brexit talks. The rate pushed to weekly lows of 1.1065 but GBP managed to set off a strong come back against it's European counterpart after Bailey downplayed Negative Rates comments. The Pound pushed higher throughout the week manging to nearly hit 1.1300, a two month high.

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​

18th - 22nd January 2021

Monday:

10:00 Eurogroup meeting

Tuesday:

07:00 EU German CPI
07:00 EU German Harmonized CPI
09:00 ECB Bank Lending Survey
10:00 EU ZEW Survey
10:00 EU German ZEW Survey
18:00 UK BoE's Haldane Speech

Wednesday:

07:00 UK CPI
07:00 UK Retail Price Index
07:00 UK Producer Price Index
07:00 UK PPI Core Output
10:00 EU Consumer Price Index

Thursday:

13:30 US Durable Goods Orders
13:30 US Non-defence Capital goods




Friday:

All day: Christmas Day