GBP - British Pound
GBP remained muted on Monday trading, as it patiently waits for further Brexit news to spark up some volatility. In more devastating news for the hospitality sector, Cineworld has temporarily shut down, leaving 5500 Brits unemployed in the short term, with worry for the future.
There was an online frenzy when the news broke that the Government runs its Track and Trace system on Microsoft Excel, that may have been the reason that there was an error in the UK Covid-19 case reporting. Over 15,000 cases were not recorded on time, however chief medical advisers claim this had no real impact on their Covid assessments.
Finally, Rishi Sunak spoke with the media on Tuesday morning and gave some insight into the recovery plan over the coming months. He stated that as of right now, supporting the UK job market is of highest priority, whilst he could not comment of future tax rises. He did make the point that the UK must at some point stop borrowing, as the current rate is unsustainable in the longer term, however hopefully structural changes in the UK economy will allow for new growth in certain areas. The pound is still trading between the $1.27-$1.30 range, which was predicted until the UK experienced Brexit escalations.
Risk appetite has improved once again in global markets as the US saw some positivity on Monday. Hours after President Trump was released from hospital after his Covid-19 recovery, US stocks began to rally once again. The US dollar sold off slightly, as investors focussed on news on an impending increase to the current stimulus package. It is recognised that chats between Pelosi and Muchen are still ongoing and it is expected that a deal will get done this week between the two.
There is little heavyweight data on the menu for the next 24hrs however we have ECB President Lagarde speaking, the data release has been given a medium weight guidance on its likely effect on the FX market. Fed Chair Powell will also speak about the US economic outlook at the National Association of Business Economics annual meeting at 3:40pm BST. There will likely be much volatility in the FX markets throughout, as investors look to read between the lines of the address.