June looks set to be a very volatile month for the Pound

 

Hi everyone,

 

June is expected to be the most volatile month yet for the Pound in 2020. Brexit negotiations and the extension deadline are the main drivers for Sterling, but helping pin it down are also; possible negative interest rates on the horizon, coronavirus setbacks and other economies getting back to normal faster, US-China trade wars meaning investors will pull away from the £ and into safe haven currencies and then the performance of global stock markets. We would suggest this is not the month to gamble if you have £-€ & £-$ trades in the pipeline.

The Pound has started June in the green against most currencies though, as the UK economy begins to open up. Again, this 0.5% spike seen today is expected to be short-lived as the headwinds approach, so a 'good' time to exchange maybe. The US is coming off the back of one of the worst trading weeks seen since early 2017 and the civil unrest may yet bring the $ down further this week.

May was a poor month for the Pound overall, losing 3.5% against the Euro and 2% against the Dollar. Depending on the outcome of the above factors, it could be a lot worse this month. It's an eventful calendar ahead for all the majors this week with PMI being the most important for the UK on Wednesday morning.

Lastly, thank you to everyone that got in touch with us or clicked through to our partners blogs on power of attorney and emergency wills in Spain. It was an overwhelming response and we will start to include other partners in different countries soon. If anyone would like a direct introduction to Sun Lawyers just reply to this email.

 

 

 
 
 


Upcoming data


Tuesday 2nd June

07:00 UK - Nationwide house prices
08:00 EU - Spanish unemployment change
09:30 UK - Mortgage approvals 


Wednesday 3rd June

08:15 EU - Spanish PMI
08:55 EU - German unemployment rate
08:55 EU - German PMI
09:00 EU - Italian unemployment rate
09:00 EU - Euro-Zone PMI
09:30 UK - PMI
10:00 EU - Unemployment rate
12:00 US - Mortgage applications
13:15 US - Employment change
15:00 US - PMI & factory orders


Thursday 4th June

09:30 UK - Construction PMI
10:00 EU - Euro-Zone retail sales
12:45 EU - ECB interest rate decision
13:30 EU - ECB conference
13:30 US - Initial/continuing jobless claims



Friday 5th June

00:00 UK - Consumer confidence
09:00 EU - Italian retail sales
11:30 EU - Spanish consumer confidence
11:30 US - Non-Farm payrolls
11:30 US - Unemployment rate
11:30 US - Average earnings
20:00 US - Consumer credit





Ian Daly
Trading Floor Manager

 
 
 

 

 

GBP
GBP

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USD
USD

 

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$ 1.2380

 

   

GBP
GBP

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EUR 
USD

 

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€ 1.1140

 

 

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