Good afternoon,
The recent Fed interest rate news combined with the extension of the UK lockdown, the pound had a difficult June losing ground to the USD, but is now looking to the 19th of July for strength.
Brexit is also coming back in to the fold with discussions to take place between the UK and EU over the movement of exports in to Northern Ireland. The immediate discussion is around chilled meats but represents a significant milestone, should the two parties achieve an agreement. Naturally, if this is the case, the agreement will be used as a paradigm for future discussions and negotiations.
The euro has enjoyed a fairly quiet summer with the only news of note being the ECB saying any tightening of the monetary policy would be premature and that they are happy for inflation to continue.
The focus this week will be on Friday’s US jobs data. With the majority of data releases this week being fairly low importance, the job data on Friday will provide a good picture as to how the data set can reinforce the hawkish comments from the Fed earlier this month.
Have a great day.
Author: Joshua Nagenthiran, Senior Relationship Manager
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