8th March - Weekly FX Update

GBPEUR

Monday 9AM 8th March: 1.16339

The GBPEUR rate survived Wednesday’s budget announcement and closed the week strong, holding support at 1.15. The European Central Bank will update the public via press release on its monetary policy meeting this Thursday at 12:45 GMT. The aim for the ECB’s Governing Council is to achieve an inflation rate of under 2% across the Euro Area, where official interest rates will be set and will impact the relative value of the Euro against the Pound. The data released on Thursday will give a better indication as to whether Sterling will continue its bullish recovery and push beyond 1.17.

GBPUSD

Monday 9AM 8th March: 1.38168

Despite breaking the 1.40 benchmark again on Thursday, GBPUSD tumbled heading into the weekend, briefly dropping below 1.38 on Friday. The Dollar gained on the Pound as the U.S. Senate passed Biden’s $1.9tn fiscal stimulus package, which will see most Americans receive a $1,400 direct payment in an attempt to revive the economy. On top of this, the U.S. bond market further reinforced the Dollar and unemployment rates surprised market expectations. However, with yields appearing to lose steam, Sterling could recover and climb to 1.40 and above over the coming weeks.