Eat out scheme shows promising signs.
Tuesday 11 August, 2020
Daily Currency UpdateGBP - British PoundUK employment data came in worse-than-expected this morning as the number of employed people in Britain fell by 220,000 in the three months to June, the most since 2009. This figure must be taken with a pinch of salt as it is expected many jobs have been pulled in the short term, with the aim of re-filling it by the end of the year. In more upbeat news, the Gov’s ‘Eat out’ scheme has been a great success so far and has been used over 10m times. From this, we’ve seen a 3.9% weekly increase in number of shoppers with a more even distribution of footfall across the day. It is likely we won’t see much of the impact on UK GDP release tomorrow, however it is likely that next months will soar. As Brexit negotiations kick off next Monday once again, it is likely we shall see a muted week for GBP.
Key MoversAs leaked by Trump at the start of last week, US employment data came in better-than-expected. Non-farm payrolls came in at 1.763m as opposed to the expected 1.53m. USD finally found some gains on the back of the news however this didn’t last too long. Investors will be looking towards the end of the week for USD news, as we see the release of CPI, unemployment claims and retail sales. As global cases shift away from economic powerhouses, stocks have risen and have been accompanied by a risk-on attitude. As a result, the Aussie and Kiwi Dollar have both risen against the greenback.
- GBP/USD: 1.2980 - 1.3160 ▼
- GBP/EUR: 1.1055 - 1.1210 ▲
- GBP/CAD: 1.7375 - 1.7525 ▼
- GBP/AUD: 1.8180 - 1.8310 ▲