Sterling at 3-week high against Euro
It has been a quiet week on the market with very little happening in terms of volatility and data releases. That being said, the £-€ rate has managed to gain an average 0.3% each day since Wednesday and hits an attractive 3-week high. The currency pair is actually up 1.2% in just 2-weeks now and looks set for more gains IF 'freedom day' arrives in 17-days time.
Germany had been leading a mini € rally at the beginning of the week with strong inflation and employment data. But they then followed up with depressing construction and retail sales figures that then softened the single currency. The US Dollar has had a good week across the board and is expected to end the week strongly if it produces positive jobs data later today. This would just be a blip in the road for £-$ rates, as the currency pair still trades comfortably at a 3-year high and is forecast to finish the year even higher.
UK PM Boris Johnson told reporters earlier in the week that there is nothing in the data yet that shows a need to delay the lifting of restrictions on the 21st. This went down well of course with investors and £ received a boost. Then today, despite the severe worldwide challenges of material availability, the UK produced very positive construction figures. New orders increased at a record pace and output accelerated to the highest point seen since 2014. Yet more good news for the UK economy and more strength given to the Pound.