The Pound continues to rally
The Pound starts June well, but unlikely to carry on
All Sterling exchange rates have moved a little higher this morning, but for now has not really clawed back the loses we saw yesterday. This morning’s data was better-than-expected for the most part but just be reminded that April and Q2 conditions are going to be much worse considering that the UK only went into lock-down on 23rd of March. Not to mention that conditions at the start of Q1 also got a boost from post-election euphoria, which has long faded away and will not see a recurrence this quarter. That coupled with Brexit negotiations risks, will deter business investments even more alongside an uncertain recovery path in the coming months. In short, yes, the data was 'not as bad as expected' but it doesn't give much to be optimistic about when you factor in all the other circumstances at play
The Government will lay out a more extensive set of guidelines at 14:00 BST, while Prime Minister Johnson is set to appear before Parliament at around 15:30 BST to expand on Sunday' night's address.
Tomorrow is shaping up to be a big day for all Sterling exchange rates, with an early morning meeting from the Bank of England. The meeting will take place at 07:00am and any developments here in terms of guidance offered and any projected forecast for the UK economy could result in a significant shift in exchange rates.
There's plenty of data due this week and it will also be the turn of the UK's central bank (BoE) to announce its latest policy decisions. The decision is actually going to be at 7 am, rather than the usual 12pm. Other key news includes Euro zone Retail Sale data and also on Friday the latest US Non-Farm Payroll and unemployment data from the US.