Home Daily Commentaries Sterling higher as pubs and restaurants reopen

Sterling higher as pubs and restaurants reopen

Daily Currency Update

GBP - British PoundThe UK hospitality sector got a welcome boost this weekend as pubs, restaurants and cinemas were finally allowed to reopen after over three months of Coronavirus enforced shutdown. The re-opening dubbed "Super Saturday" seems to have been a relative success with those fearing hospitals would be overwhelmed with revelers taking it too far being proven wrong. As more and more venues reopen this weekend it will be another test to see how the English public and the sector copes with months of pent up demand. However the nightmare scenario that many had predicted seems to have been averted for now. Its a relatively quiet week data-wise from the UK so expect Coronavirus developments to dictate sterling moves. Particular attention will likely be focused on any potential uptick in infections from the easing of measures allowing pubs to reopen, however that will likely take a few days to be seen, if it is at all. GBP/USD trades just under 1.25 with GBP/EUR at 1.1065.

Key Movers

The US enjoyed a long weekend on the back of the Independence Day public holiday and there was good news heading into the weekend as monthly jobs data again exceeded expectations. The median consensus of around 3m jobs being added in June was exceeded with 4.8m being added and the rate of unemployment dropping to 11.1% from 13.3% the month before. As is sometimes the case, Donald Trump held an unscheduled press conference to hammer home the good news and promote his handling of the economy throughout one of the toughest times it has experienced. This week is very light on data with the main areas of focus likely to be Australia's interest rate decision due tomorrow night, with no change in rates expected, and today's US ISM Non-Manufacturing PMI which is predicted to show a flat 50 reading. Particular attention will be drawn to Cronavirus cases in the States, especially in the South which has seen a recent spike in Florida, Arizona and Texas.EUR/USD trades at 1.1285.

Expected Ranges

  • GBP/USD: 1.24 - 1.2530 ▲
  • GBP/EUR: 1.10 - 1.1110 ▼
  • GBP/AUD: 1.7890 - 1.8020 ▼
  • GBP/NZD: 1.90 - 1.9170 ▼
  • GBP/CAD: 1.6880 - 1.70 ▼