The pound jumped against both the euro and dollar yesterday, in a surprising move which has seen both pairs gain around the 0.8% mark. The European Central Bank failed to breathe life further into the single currency yesterday, as the bank announced they were “recalibrating” the PEPP scheme mentioned yesterday. Although this was seen to be a positive move for the euro this time yesterday, the taper was not as bold as perhaps hoped by some in the market. EUR/USD also failed to deviate much from 1.18 – 1.1840.
Early this morning the UK released GDP figures for the month of July. Seeing just a 0.1% growth after lockdown restrictions were removed in England, the release marks the sixth consecutive month of growth. In June the economy grew by 1%, and analyst are highlighting that although the restrictions have lifted, the UK is still not out of the woods in terms of a solid economic recovery. Events within sport and festivals allowed to resume after social distancing restrictions were lifted helped the figures, however the main driver comes down to oil and gas, where one particular oil field reopened following scheduled maintenance.
Heading into Autumn there is a natural jump in illness and concerns about another wave of Covid cases are being spoken of. This year compared to last however, there is a strong vaccination programme which should help reduce hospitalisations and give more confidence to the population to get out and about.
Have a great weekend.
Jack Nicholls, Senior Relationship Manager.
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