The Pound is holding onto last week's gains for now.. |
GBP |
It was a great week last time out for the Pound and a large portion of our customer base jumped at the chance of a securing a multi-month high. Buying high is both about banking 'profit' and choosing to protect the potential downside instead of hoping for a little more. The Pound is currently trading at the top of its range and whilst the psychological barriers of £-€1.18 & £-$1.30 are in sight, remember it was £-€1.14 & £-$1.21 just a few months ago. This week, traders, investors and the rest of us are awaiting important figures out of the UK. Tomorrow's jobs report is key for the Pound near-term, as-well-as Wednesday's GDP number. Marginal changes are expected from last month, which means anything other than that will create volatility. EUR It's a very quiet week for the EU in terms of data and so the Euro will be moved by events outside of its control. Last week saw €-$ gain, but €-£ fall and we may see a slight reverse of that outcome this time round. A Spring interest rate cut was priced into the single currency last week and so the Euro will be overall vulnerable in the weeks/months ahead, unless the ECB change their stance and push the event back. In which case, the Euro will be undervalued.. USD It wasn't a 'pretty' week for the Dollar last time out after losing value against a basket of currencies. A host of economic data went against the $ last week, but ultimately it was due to comments by Fed Chair Powell that caused the weakness. 'Further evidence is needed to show that inflation can be kept down and we are close to that point' was enough to suggest to traders/investors a June interest rate cut is on the cards. |