Blog


Market Update

The pound has steadied off this morning, slipping slightly against the dollar but holding recent gains against the euro, ahead of an expected announcement about an extension of Britain’s lockdown imposed to curb the spread of coronavirus.

The British government is expected to announce that it will extend the lockdown in the UK for a further three weeks at its daily coronavirus news conference around 1700 London time, after an emergency response committee meeting at 1530.

Michael Hewson, chief market analyst at CMC markets said the lockdown extension is already priced into the pound. Sterling is more driven by the dollar’s strength and the euro’s potential to weaken than by domestic factors, he said.

In terms of where the pound could go in the short to medium-term, it could probably drift back to around $1.225 over the course of the next few sessions but ultimately I don’t expect it to weaken profoundly and if it does it’ll only be as a result of a big rise in the value of the dollar.

As the coronavirus pandemic continues, worldwide cases have reached 2 million and lockdown measures have halted growth around the world.

U.S. jobless claims data, due at 1.30 pm London time (1230 GMT), is expected to underscore the deepening economic slump but is already priced into currency markets we believe.

Leave a Reply

Your email address will not be published. Required fields are marked *

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’s Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Manager. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the Information Commissioner's Office, with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers