By Matthew Boyle
Last week saw the best week for the Pound since February of this year with it gaining around a cent against the EUR and 1.5 cents against the USD.
First quarter GDP showed the UK economy had shrunk much less than expected during the third lockdown and with pubs and restaurants opening this week it has breathed some confidence once again into the Pound.
This has also been helped by Boris Johnson’s comments that the coronavirus is now In retreat and extremely bullish UK growth forecasts for the year ahead.
So in the short term it seems the Pound is back on the front foot. However caution should be taken as it emerged this week the Bank of England monetary policy committee has been cautioned by England’s Chief medical officer Chris Witty that there is the “risk of a new strain of Covid or a new version of Covid emerging”.
And whilst nothing this week looks like it will shake GBP rates significantly we do have a very busy week for data with numerous speeches from central bankers and the UK, Europe and the UK going head-2-head on Friday in manufacturing and production data and results will need to be strong to keep the Pounds momentum.
So, If you have any upcoming transfers to make speak to your broker today to take advantage of current rates and for some friendly guidance on how to avoid getting caught by any costly dips.
Monday
14.05 USD Fed Member Speech
13.50 GBP BoE Member Speech
Tuesday
06.00 GBP Unemployment data & Claimant count
07.00 EUR EcoFin meeting
09.00 EUR Q1 GDP & Trade balance data
14.00 EUR ECB President Lagarde Speech
Wednesday
06.00 GBP Inflation data
07.20 EUR ECB member speech and stability review
09.00 EUR Inflation data
18.00 USD FOMC minutes
Thursday
01.30 USD Employment data
12.00 EUR ECB President Lagarde Speech
23.01 GBP Consumer confidence
Friday
01.30 AUD Retail Sales data
06.00 GBP Retail Sales data
07.30 EUR German Services and Manufacturing data
08.00 EUR Eurozone Services and Manufacturing data
08.30 GBP UK Services and Manufacturing data
12.30 CAD Retail sales
13.45 USD US Services and Manufacturing data
14.00 EUR Consumer confidence