28/01/2021 – This Morning’s Exchange Rates

  • Posted by currencies in Rate Alerts
  • January 28, 2021
  • No Comments

GBP has fallen this morning against major currencies off the back of comments from Boris Johnson yesterday that seem to suggest the current lockdown in The United Kingdom will be extended until at least the 8th of March. This decision has been driven by the fact that the PM believes if the drop in cases and subsequently a fall in deaths would make it safer for schools to return, signalling the first stage in lifting the lockdown.

Earlier in the week, GBP unemployment rose to 5% for the first time since 2016 relating to over 800,000 jobs being lost due to the stop start effect the national lockdowns have had on the economy. Employers had made a record number of redundancies between September and November due to the initial ending of the Furlough Scheme, which albeit was extended it was too late for many of the job losses.

The Euro is coming under pressure with Business confidence declining in Germany in January again ultimately off the back of further restrictions and lockdowns. More importantly, with Germany being accountable for 40% of The Eurozone performance, it is expected that Euro-Zone business confidence will also drop for January.

The EU is also feeling the effects of a decision to delay the agreement with AstraZenica for the roll out of millions of Vaccines in Europe. This has led to The EU being approximately 3 months behind The UK which has added to fears and pessimism about the chances of The European economy returning to normal sooner rather than later.

USD has held steady after yesterday’s Fed Reserve meeting. Throughout the session there was speculation around what would happen to the Interest Rates moving forward. The current rate of 0% – 0.25% has been maintained for the time being with Fed Reserve Powell stating, “the economy is a long way from our employment and inflation goals.” Similarly, to the EU, any progress on employment and inflation will be largely dependent on the vaccine roll out over the coming months.

All eyes are on the 4th quarter GDP figures for the U.S with expectations suggesting an annualized rise of 4.1%. Quarter 1 is expected to be weak given the renewed virus restrictions, but the growth is expected to come thereafter due to the vaccine roll out and ultimate ease of restrictions.

GBP/EUR 1.1251 GBP/USD 1.3644 GBP/AED 5.001

GBP/AUD 1.7936 GBP/CHF 1.2141 GBP/CAD 1.7536

GBP/NZD 1.9140 EUR/USD 1.2097 GBP/ZAR 20.687

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited and Equals Connect Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. | Terms and Conditions | Privacy Statement | Careers