IFX Market Report: Tuesday 22nd June 2021

The Great British Pound was able to gain some traction on Monday after a dismal performance last week, making gains against both the Euro and more notably, the Dollar. This morning Cable is trading just above the 1.3869 mark after recovering yesterday from falling to a fresh monthly low of 1.3785. Sterling’s rally came as Prime Minister Boris Johnson said he is positive about the delayed ‘re-opening’ 19th July, noting the data is “looking good”. While this statement from Johnson can be taken as somewhat upbeat, he did go on to add with caution that he will not rule out further lockdowns this coming winter if necessary. The PM stated that Britain must brace itself, as “you can never exclude that there will be some new disease, some new horror that we simply haven't budgeted for or accounted for”. Aside from another potential lockdown, Johnson also said that this coming winter will be a “rough winter for all sorts of reason”. If the latter half of the year does indeed turn worse for the UK, it is almost certain the Pound will suffer as a result.

GBPUSD opened the week at 1.3808, already under pressure from a strong US Dollar. After clawing back some of the losses it had made Monday, overnight the rate plummeted, coming close to dropping below the 1.3900 handle once again. Cable closed the London session at 1.3903.

GBPEUR was also able to gain some upside yesterday. The pair started the week at 1.1634 and closed at 1.1674.

EURUSD was able to surpass the 1.19 handle yesterday after falling below the mark of late. The pair opened the session at 1.1862 and closed at 1.1910

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