Sterling starts the week on the front foot
So after suffering sizeable losses last week, the Pound is looking to bounce back and has started this week well. Tomorrows UK GDP figures look set to dominate the week with analysts hoping for a better than expected figure, after strong PMI data recently. But there is plenty of data elsewhere too that will ensure a busy week ahead.
The Pound it seems has found support levels at £-€1.15 & £-$1.37 mid-market currently and so trading ranges are from this point to £-€1.18 & £-$1.40. A much more manageable range for anyone with exchanges in the pipeline. With the re-opening of much of the UK today and the herd immunity subject on everyone's lips, Sterling should start to strengthen in the weeks to come, regardless of other news.
There were multiple reasons as to why the £ crumbled last week, but one that we didn't note was Boris Johnson's reluctance to loosen the lockdown roadmap. There was hope amongst traders that the PM would stick to his assertion of "data, not dates" and allow for normal life to return quicker than projected, seeing as all the data proves things are much better than expected. Another of note was the disappointment of a traffic light system being announced for foreign travel. It may mean that covid tests for a family of four would end up costing more than a return flight abroad.
Elsewhere, the EU & US publish their latest inflation figures this week, although these could be non-events. Economic sentiment has played a big part so far this year and tomorrow EU businesses give their assessment of the coming months. Thursday's US jobs data will once again be the main attraction for £-$ buyers.