Daily Currency Update

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Boris Begins Easing Lockdown Measures

GBP - British Pound

Yesterday, in an address to the nation, Prime Minister Boris Johnson announced the first in a number of steps to begin easing the United Kingdom's current lock down measures. From June 1, outdoor markets and car showrooms will be reopened, given they can meet certain guidelines to ensure the safety of any potential customers. Furthermore, other non-essential retail will begin to open from June 15, once again if certain tests are met.

Boris Johnson also continues to stand by Dominic Cummings, despite mounting pressure to relieve him off his duties. Cummings has refuted that he did anything wrong when he drove 250 miles from London to arrange childcare, whilst the rest of British public were being advised to stay at home.

Sterling jumped on the European open, up 0.5% against the dollar and 0.4% against the euro.

There are no major UK economic reports on the calendar this week, however nearly all the data over the past few weeks has printed worse than expected so this could be somewhat a blessing in disguise for the pound.

Key Movers

Oil prices continued their recovery today as confidence grows that producers will fulfil their commitment to reduce the supply of crude as demand picks back up.

This week China unveiled a plan to take stronger action on anti-government protests in Hong Kong. They proposed new security laws that would discipline opposition on the mainland. The worry is that this would elicit a strong response from the US who could see this as a reason to re-examine Hong Kong’s special trade status with the US.

In terms of data this week, all eyes will be on Thursday’s US prelim GDP quarterly release, expected to drop to -4.8%. As still the worst effected country in the world of Coronavirus cases and deaths, Trump will be looking to the economy for some positive news.

Expected Ranges

GBP/EUR: 1.1170 - 1.1240 ▲

GBP/USD: 1.2160 - 1.23 ▲

GBP/AUD: 1.8520 - 1.8680 ▼

GBP/CAD: 1.7020 - 1.7130 ▲

GBP/NZD: 1.99 - 2.01 ▼