14th June - Weekly FX Update

GBP/EUR

Monday 9AM 14th June: 1.16278

After falling below 1.16 early last week, the GBPEUR headed into the weekend strong, breaking 1.165. However, with Boris Johnson set to extend lockdown by 2-4 weeks, the Pound is under pressure, with a support level at 1.1550. Tomorrow see's some significant data releases, including UK employment figures and German inflation numbers. UK inflation will also be released on Wednesday. After surges in US inflation, investors are worried that this may not be as temporary as first thought. The Pound has already dropped this morning in anticipation of the press conference tonight, and could continue to do so if it fails to find a catalyst in the various data releases.

GBP/USD

Monday 9AM 14th June: 1.40828

The Dollar steadied itself heading into the weekend, after the Pound reached a high of 1.41884. Despite US CPI coming in above expectations, the Dollar seemed unfazed as The Fed remain confident that rises in inflation are transitory, and as of right now, it is too early to end its fiscal stimulus. These inflation figures have seen its biggest leap since 2008. Looking ahead, investors are paying close attention to Boris Johnsons Covid-19 announcement tonight, as well as the Fed meeting on Thursday, to ascertain whether there is any strategy in place to reduce bond-buying