Over the course of the week we will see a flurry of GBP related data released, despite a quiet day on the horizon for UK releases. The pound had a turbulent few days last week, as we saw GBPEUR hit a new yearly high of 1.1718, before quickly retracing back below the key psychological level of 1.17. Against the US dollar, the pound broke through the 1.40 mark on two separate occasions before being sold back off again to currently sit at 1.3861 at the time of writing.
Covid worries still continue to plague sentiment within the Eurozone, with the majority of stock markets opening the new week on a softer note. Parts of France, including Paris, entered into a third lockdown due to increased case numbers and the threat of a third wave sweeping the country. The bloc is still dealing with how best to deploy their Covid vaccines. And with growing case numbers in Germany, the euro is beginning to drag against both the pound and the dollar. In contrast to Europe, the UK has now officially administered over 27.6m first doses of the vaccines, which has been driving GBP sentiment over the first quarter of the year.
Potentially the biggest talking point from the weekend however comes from Turkey, where the lira has lost over 17% against the pound through Asian trading hours. After only 4 months in the job, the head of the central bank was sacked following moves to fight inflation.
Have a great day.
Jack Nicholls, Relationship Manager.
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