Sterling Optimism, Euro Challenges, and Dollar’s Dilemma

GBP The Pound continued its upward trajectory against both the Euro and the Dollar this week, reaching multi-month highs of 1.1680 and 1.2720, respectively. Sterling’s ascent was fueled by the optimistic statements from various Bank of England (BoE) officials, including Governor Andrew Bailey, following robust UK business PMI data in the previous week. Throughout the…

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BoE Rate Hike Expectations Climb Higher

GBP With the data calendar for the UK being extremely sparse last week, Sterling traded off the back of key data releases coming out of the US and Eurozone. GBP|EUR traded in a sideways direction for most of the week, bottoming out in the low 1.16’s and peaking at 1.1690, with 1.16 and 1.17 being…

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Covid Variants Could Dampen Pounds Potential

GBP The Pound was the top performing G10 currency last week, increasing by 0.8% against the Dollar and just under 1% versus the Euro. GBP/EUR closed the week just above 1.16 following its best week since February. Sterling benefited from an expiry of election related political risks, as well as first quarter GDP data that…

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Poor US Employment Report Fuels Dollar Sell-off

GBP The Pound had a stellar week versus the Dollar increasing by 1.2% but was unable to achieve the same against the Euro, as the pair finished flat for the week. The Scottish National Party won 64 of the 129 seats at Holyrood and Scotland’s first minister Nicola Sturgeon has told Prime Minister Boris Johnson…

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Pound Undervalued According to Major Banks

GBP The pound manged to regain some of the losses it sustained the week before, increasing by 0.3% against the Euro and 0.9% against the Dollar. Though Sterling did suffer a shock at the beginning of the week when the Bank of England’s Chief economist Andy Haldane announced he would be leaving the bank. Haldane…

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Bonds Selloff Gives the Dollar Short Term Strength

GBP The unrivalled strength of the Pound driven by the vaccine rollout now looks to have come to an end as the bond and equity markets had a difficult week. Sterling ended the week 0.6% lower against the dollar, most of this move came after the equity sell off in the United States on Thursday…

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Coronavirus Dominates the Market

GBP A relatively data-light week ahead in the FX market for both GBP and EUR, with UK consumer confidence being the only data drop on Friday morning. The G20 Summit took place over the weekend, in which UK officials criticised the EU over its indecision regarding the mandate presented for post-UK trade talks. The relationship…

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