The pound kicked off the new week continuing where it left the last, gaining against both the euro and the US dollar following a substantial sell-off the previous week. Slowly clawing back the losses, which saw more than a 4% sell-off in GBPUSD since the February high above the 1.42 mark, GBP traders will be looking to for signs of economic health in the UK this week.
Despite a quiet start on the data front, releases pick up steam from tomorrow onwards. The highlight of the publications this week will be ECB interest rate decision on Thursday. Whilst rates are not expected to change, analysts will be looking to the following press conference for views from the ECB as to what’s in store in the coming weeks and months. With EURUSD currently sitting just shy of 1.20, any Eurozone positive outlook could see the rate fly though the mark.
With impressive first dose figures being released from the bloc last week, the Eurozone is moving quickly with the increased vaccination supply. Coupled with the outcome of Thursday’s meeting, the euro could potentially make a positive run into the end of the week.
Have a great day,
Jack Nicholls