All eyes still on Super Thursday
Tuesday 8 June, 2021
Daily Currency UpdateGBP - British PoundThe markets were still stuck on their half-term holidays yesterday, languishing in the sun as very little activity sparked any action. The largest update in the UK came from Health Secretary Matt Hancock, who whilst speaking in Parliament confirmed the effectiveness of the vaccination programme, also stating that it is still too early to confirm if the June 21st will remain 'Freedom Day'. To reiterate, whilst no formal announcement will be made before next Monday, the modus operandi of the government is to leak things to the press in the week beforehand. Market participants should therefore be conscious of this and any delay, or indication of a delay could see the pound sell off against the US dollar or euro.
Key MoversYesterday showed that the Eurozone economy still had some significant slack with April's Germany factory orders missing expectations. On top of the obvious coronavirus reasons for this, there appears to be issues still as a result of the blockage in the Suez Canal, as well as the ongoing semiconductor shortage. While the ever-increasing vaccine programme expands across Europe, this Thursday's ECB meeting should see things remain the same. Even if Christine Lagarde, the head of the ECB, indicates or flirts with the idea that the asset purchasing programme could be tapered later in the year, this could see the euro strengthen particularly in the face of the US Dollar.
- GBP/USD: 1.4100 - 1.4185 ▼
- GBP/EUR: 1.1610 - 1.1670 ▼
- GBP/AUD: 1.8235 - 1.8425 ▼
- EUR/USD: 1.2110 - 1.2200 ▼