IFX Market Report: Monday 12th April 2021

Last week was tough for Sterling, with the currency recording its worst week since September 2020 against the Euro. Despite this, economists believe moving forward “GBP may find a bit of stability” as Britain this week eases lockdown measures. As some restrictions are lifted Prime Minister Boris Johnson has described the occasion “a major step forward in our roadmap to freedom”. Johnson went on to add that he is “sure it will be a huge relief for those business owners who have been closed for so long, and for everyone else it's a chance to get back to doing some of the things we love and have missed”. While possessing a positive outlook on the country’s future, the Prime Minister urged “everyone to continue to behave responsibly… as we push on with our vaccination programme." The pound is slightly edging against the USD and Euro as London’s open plays out, and more gains could come as a reaction to Britain’s ‘re-opening’.

After opening Friday at 1.3705, GBPUSD went on to close at 1.3731, marking Cables worst week against the Dollar since December.

GBPEUR remained uninspired on Friday as it exhibited little resilience. The pair opened at 1.1522 and closed at 1.1548.

EURUSD in contrast made losses on Friday, opening at 1.1894 and closing at 1.1890.

On the data front it’s a rather light start to the week, with Eurozone Retail figures being this morning’s highlight at 10:00. Then in the afternoon from the US is the Monthly Budget Statement.

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