Improving investor optimism keeps Sterling firm

Hi everyone,

£-$ rates have hit a 1-month high and £-€ rates are trading closer to the psychological barrier of 1.15 mid-market. The Pound continues to hold firm as global stocks improve as well as overall investor sentiment. 

There are increasing signs that the worst of the coronavirus has come to pass. The Dollar is weakening as investors pull out into other currencies, France, Germany and Spain are starting to roll out their exit plans from lockdown and the US death toll has stabilised. Closer to home, the number of new cases in the UK is down to levels last seen April 5th.

Some of the worlds largest companies report their quarterly performances this week and this could halt the Pounds advance. Because Sterling's fortunes are tied to the overall state of the financial market, if earnings show distressing figures for Q1, the Pound could suffer.

Data released today shows that the UK unemployment rate could more than double during the lockdown. Goldman Sachs are suggesting unemployment will be at 8.5% by June, the highest since 2013. The Euro-Zones number is expected to nearly double from 6.3% to 11.5% and with it push the economy into a deep recession. 

It's rather quiet on the data-front this week for most, but watch out for the US figures tomorrow and Thursday for those with $ to buy, as the Pound could gain on the back of poor results.

 

 

 

Upcoming Data

 

Wednesday, 15th April, 2020


11:00 US - Mortgage applications
12:30 US - Retail sales
13:15 US - Manufacturing & industrial production
14:00 US - Business inventories & housing market index
18:00 US - FED releases beige book 


Thursday, 16th April, 2020


06:00 EU - German CPI
08:30 UK - BoE credit & liability conditions 
09:00 EU - Euro-Zone industrial production
12:30 US - Jobless claims & housing starts



Friday, 17th April, 2020

 
00:00 UK - Moody's sovereign debt rating
09:00 EU - Euro-Zone CPI
14:00 UK - BoE meeting
  

 
 
 


Dan Waterman
Sales Director

 
 
 


 

 
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