Good afternoon,
The pound failed to get to the key psychological level of 1.40 against the US dollar ending up at a high of 1.3927 and a low of 1.3869 during yesterday’s trading. GBPEUR and EURUSD followed suit with low levels of volatility. This week’s economic data continues to focus on USD with yesterday’s US Durable Goods Orders missing the consensus percentage (2.5%) by 1%. Today’s economic calendar looks quieter, expect news headlines to be the major market moving factor.
With the UK getting ever closer to normality we have reports from Deloitte and EY highlighting Britain is set for a “sharp snap back” in spending by shoppers. This emphasises the point made last week about the pent-up demand in the UK. The Office for National Statistics has upgraded its 2021 growth forecast from 5% to 6.8% making it the fastest rate since ONS records began. Economists at EY Item Club have unemployment forecasts down from 7% to 5.8% towards the end of the year. It’s clear to see why sentiment for the pound is so high with the pound holding up with a 2.77% gain against the EUR for 2021 and up 1.80% against the US dollar for the same time period.
In other vaccine news the EU is set to take legal action against AstraZeneca over the ongoing allegations that they have failed to fulfil its contract to supply Covid-19 vaccines. This does come as little surprise with the ongoing battle between the pharmaceutical giant with accusations that AstraZeneca have been unfairly and illegally routing jabs into the UK. In a statement made today AstraZeneca have committed to delivering almost 50 million doses to the EU by the end of April, this is unlikely to deter EU legal action.
Have a great day.
Josh Saunders, Relationship Manager
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