IFX Market Report: Monday 24th May 2021

GBPEUR was able to close above the 1.16 handle on Friday as the Pound capitalized on a weak Euro. While the Pound is holding relatively steady, rising cases of the ‘Indian’ variant of COVID-19 in the UK pose a major threat to the downside. On Thursday Britain recorded its highest daily total of new COVID-19 infections in a month. Despite this, Reuters have noted that “The overall incidence of infections in Britain is still low, while the number of people in hospital with COVID-19 fell to its lowest level since September on Thursday”.

Britain’s world leading vaccine rollout has also kept the Pound steady. At the weekend it was confirmed that more than 60M COVID-19 vaccine does have been given in the UK. On Saturday, over 762K jabs were administered. The “latest government data shows 556,951 UK adults received a second jab on Saturday, meaning that 43% of the adult population - 22,643,417 people - have now been fully vaccinated”.

GBPUSD made a subtle loss on Friday – opening at 1.4190 and closing the week at 1.4162.

GBPEUR in contrast, started Friday at 1.1598 and managed to close the week at 1.1619.

EURUSD also saw some action as a steady Dollar made the most of a weaker Euro. The pair opened the day at 1.2235 and closed at 1.2188.

On the data front, Monday is a quiet schedule. With no notable releases in the morning, at 13:30 the Chicago Fed National Activity Index (CFNAI) reading for April will be released. The Chicago Fed National Activity Index (CFNAI) is designed to gauge overall economic activity and related inflationary pressure. Last months reading was 1.71. Following this, both Fed members Brainard and Bostic will be speaking.

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