Last week was generally a pretty good week for Sterling as we saw some positive data releases which helped push the Pound to Euro rate to 1.1180 on Friday morning, and 1.3250 against the U.S Dollar. Unfortunately, by market close on Friday, we ended at 1.1090 for GBPEUR at 1.3085 against the U.S Dollar.
We saw Sterling begin to give up its gains at around 11am following speeches from both Barnier & Frost detailing that there had not been any progress with Brexit talks over the last week (Surprise surprise). Brexit Talks will take the usual trajectory with posturing up until the final hour, and that’s when I believe a deal will be done until then, these updates from the negotiators are pretty pointless for the market.
What I have noticed over the last week is that the U.S Dollar has begun to stabilise, we have seen this by watching the Dollar Index. It is also worth noting that GBPEUR has moved in correlation with the Dollar Index, and it will be interesting to see if this correlation continues as the DXY begins to rise again and correct.
This week will be interesting as Jackson Hole is going on, with speeches from Central Banks being the key focus’s for me this week- most importantly Governor Bailey’s speech on Friday- which is worth noting in your calendar if you are looking at making transactions between now and September.
In regards to data, not much is of interest this week- apart from U.S GDP figures on Thursday, so the main things to watch out for are coronavirus cases, lockdown measures and Jackson Hole.
If you have a particular situation that you would like to discuss, please don’t hesitate to get in touch so we can put together a strategy for you.
In other news- for those that know, I ruptured my Achilles in late May, and have now been cleared to start walking again! Thought I would share the good news with you all, appreciate all of your well wishes over the last few months.