The pound has started the week on the front foot, in stark contrast to last week’s turn of events. After topping the charts at a new high of 1.18, sterling then preceded to sell off nearly 2.5% against the euro, making it the worst week for pound traders since September of last year. Heading back over half a year, we had second lockdown fears and Brexit woes still lingering to force the rates lower, whereas this time round analysts are pointing the finger to profit taking, after such a strong run. Coupled with the fears around the AstraZeneca vaccine safety, despite regulators continuing to echo that the jab is safe for use.
On the economic calendar today, the major release will be the eurozone retail sale figures for February. As with all releases comparing the year on year data, sales are expected to be in a far worse situation than this time last year, when Covid was yet to grip Europe. If the results come in worse than expectations, we could see GBPEUR continue on this morning’s positive path. Early tomorrow, we also see UK GDP released.
And with it being the 12th April, today marks the day England takes further steps out of the Covid measures, with gyms, restaurants, pubs and retail stores being able to open their doors again. A welcome sight for many, as the UK Government continues to work towards the June target of removing all Covid restrictions.
Have a great day.
Jack Nicholls, Relationship Manager.
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