After slipping into the 1.33 range early in the session, GBPUSD was able to recover slightly by the close yesterday, finishing above the 1.34 mark. The UK government on Monday announced further sanctions against Moscow and Britons have been advised against all travel to Russia. Foreign Secretary Liz Truss said that the UK will sanction three more Russian banks and also ban several “critical” exports to Russia from the UK. Ms Truss noted that these sanctions and bans “could end up lasting months and years” but said that the UK was “prepared to suffer economic sacrifices… for however long it takes”. Truss went on to add that given “over 50% of Russian trade denominated in Dollars or Sterling, our co-ordinated action with the United States will damage Russia's ability to trade with the world”.
GBPUSD started the week at 1.3373 and closed at 1.3415. Many economists believe Cable will struggle as the week progresses, claiming that the pair will “face additional bearish pressure in case sellers drag it below 1.3340”.
GBPEUR made a loss on Monday. The pair opened at 1.1950 and after losing almost 20 pips in the session, finished at 1.1931.
EURUSD was able to gain minor upside on Monday and reclaim the 1.12 handle after dropping into the 1.11’s. The pair opened at 1.1191 and closed at 1.1243.
Despite the busy economic calendar today, it’s unlikely any of these releases will influence markets given the geopolitical situation. At 07:00 Germany released January’s Retail Sales YoY, followed by February’s Markit Manufacturing PMI at 08:55. The Eurozone also released its latest Manufacturing PMI at 09:00. UK Markit/CIPS Manufacturing PMI is scheduled at 09:30 and due to come in at 57.3. In the afternoon, at 13:00 Germany will release its preliminary Inflation Rate YoY for February, expected at 5.1%. Then from the US, Markit Manufacturing PMI and ISM Manufacturing PMI are both due to be released.