The Pound recovers some losses
The Pound has jumped 0.5% across the board in the last 24-hours and looks set to close the week out strongly. There is actually nothing of major note to suggest why the £ has recovered the weeks losses, so we are just assuming the recent profit-taking has come to an end.
Next week is an important one on the FX calendar, as Q1 closes out and the eagerly anticipated Q2 begins. We will see volatility in rates as both month & quarter-end positions are closed and new ones are opened. Both the £ & UK have enjoyed a very extraordinary first quarter in 2021 and things (we hope) will only get better from here as the economy really starts to open up.
UK retail sales figures for February were in line with forecasts today, as a surge in outdoor furniture helped the number rise by 2.1% from January. So far the EU's proposed vaccine export ban has done little to affect the market, but that could all change if it goes ahead. The container ship currently blocking the Suez Canal though is starting to move the markets and weaken the € slightly. Congestion in the trading route from the Middle-East to the EU could lead to fuel shortages in the Euro-Zone, if the blockage lasts for two-weeks as predicted.