IFX Market Report: Monday 14th June 2021

Sterling is on the back foot this morning as senior ministers have signed off a decision to delay the lifting of all coronavirus restrictions in England beyond 21 June. This comes as “many scientists have called for the reopening to be delayed to enable more people to be vaccinated and receive second doses amid rising cases of the Delta variant”. This move from the UK government has renewed pressures on the Pound, with many investors of the view that this will affect the pace of the UK’s economic recovery.

This, coupled with a rising US Dollar, has forced Cable closer to the 1.4100 handle. The Greenback trades near the 5-week high at 90.55 following the gains in the US 10-year Benchmark Yields from the lower levels to trade at 1.46%. The Dollar is also still going strong from the upbeat data releases on Friday. The Michigan Consumer Sentiment number for June came in better-than expected at 86.4, while being forecasted at 84. The Index is a key insight into US consumption as it focuses on how consumers view prospects for their own financial situation, how they view prospects for the general economy over the near term, and their view of prospects for the economy over the long term.

GBPUSD struggled on Friday as rumours of the delay in restrictions started to take flight and hinder the British Pound. The pair started the session well at 1.4172 but quickly came under pressure, making significant moves to the downside. Cable finally finished the week at 1.4123.

GBPEUR in contrast was able make notable gains to end last week. The pair started the day at 1.1629 and was able to surpass the 1.1650 mark, closing the session at 1.1662.

EURUSD fell victim to a strengthening US Dollar. Friday saw the pair open the session at 1.2186 and close at 1.2110.

Older posts
Newer posts