09/06/2020

Sterling remains steady


GBP

The pound continued to remain steady against most G10 currencies at the beginning of this week with increasing hopes that the UK government will announce further easing of lockdown measures. Prime Minister Boris Johnson is expected to ease restrictions on pubs, restaurants and other businesses with access to outdoor areas.

GBP investors are now starting to show a bit more optimism that the UK economy can begin its recovery. Despite this better news, risk still remains with brexit talks with both sides still seemingly quite far apart on terms they are willing to accept.

USD

The US Dollar has continued to suffer from a risk on attitude in the currency markets, with investors increasingly looking towards riskier assets as the global economy shows signs of recovery.

New York, America’s worst hit state in the coronavirus battle, has announced its phase one plan to begin to come out of lockdown with up to 400,000 workers in the construction and manufacturing industry going back to work on Monday. Despite this positive news this looks more Dollar negative than positive as it further fuels the risk on attitude.

Ahead of the FOMC meeting on Wednesday, the Federal Reserve has announced it will be expanding its Main Street Lending Program to support small and mid-sized businesses as the local economy begins to emerge from hibernation.

Key announcements

9.00 – EUR – GDP for Q1


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