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Market Update

• Posted by currencies in Bank of England, coronavirus, Dollar, EUR, GBP, Prime Minister, UK, Uncategorised
• January 8, 2021
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The UK and GBP have had an eventful start to 2021; with the UK-EU trade deal having been agreed, a third lockdown imposed and an optimistic rollout plan for vaccines to aid with ongoing battle against Covid-19. Gains seen from the agreement of a Brexit deal for the GBP were short-lived as the economic impacts of a lockdown began to be priced in.

To counter, Boris Johnson’s target of 200,000 vaccines a day has aided in pushing the Pound up against the Euro, US Dollar and many other major currencies. 1.5 million people have received the vaccine to date which is being seen as a strong run-rate going forward. Should the vaccination target succeed, we should expect the Pound to continue to outperform.

Across the Pond, US Non-Farm Payroll and Employment figures puts the Greenback into focus this afternoon. NFP being the most volatile release in the economic calendar – it is expected to drop from 245k down to 71k. Unemployment Rate seems to have little change along with Average Hourly Earnings.

This afternoon may be jam-packed with potential swings for the USD so will be worth speaking to your dedicated analyst for any exposure or requirements you may have.