It was not a great start to the month for sterling yesterday, as the pound turned out to be one of the worst performing currencies to open June. Against the euro, the pound has lost ground for 3 consecutive days and has dropped further this morning, taking the total loss for the period to 0.80%. Versus the dollar, there has not been as many days’ losses, but the fall yesterday was also near 0.80%.
The reasoning behind the drop is not being down to one tangible reason. Many analysts believe there is now a nervousness around the reopening of the UK economy on the 21st June. With that marker now fast approaching, there are fresher fears of Covid cases increasing as restrictions have been eased slightly. However, yesterday was a big milestone in the battle against the virus in the UK. For the first time yesterday, since March last year, there was not one fatality to the virus.
On the data front, the calendar is looking light for today and fairly thin for the remainder of the week. Sentiment will continue to drive sterling’s course and with any hint to the outcome of the original 21st June marker, the pound will more than likely see moves in either direction.
Have a great day.
Jack Nicholls, Relationship Manager.
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