24th May - Weekly FX Update

GBP/EUR

Monday 9AM 24th May: 1.15925

GBPEUR has jumped around the 1.16 mark throughout the last week as the Indian Covid-19 strain has dominated news across the globe. Despite both Pfizer and Astra Zeneca vaccines proving to have high success rates against the Indian variant, the Pound struggled to make any further progress over the Euro. This has led to Germany declaring the UK as a virus variant region, meaning any incoming passengers from the UK will have to quarantine for 14 days. Looking ahead to this week, German GDP and IFO numbers will be released tomorrow, and with Germany being the largest contributors to the European economy, the data is extremely important. A -3% loss for year on year growth is expected, any improvements on this will benefit the Euro. GBPEUR has tested support at 1.16 this morning, and tomorrows data will be a good indicator as to whether GBPEUR can achieve yearly highs.

GBP/USD

Monday 9AM 24th May: 1.41391

Last week, the GBPUSD reached a 2 year high of 1.42331 as the UK economy is being revitalized with lockdown easing and a fresh wave of consumer spending. Heading into Friday, the pair settled around the 1.41 level after the Dollar regained some strength. This was attributed to stronger than expected US manufacturing figures, where it was previously forecasted to dip below April's reading of 60.5 PMI. Looking ahead to this week, the GBPUSD will be heavily influenced by U.S. reports as data regarding the Pound will be scarce. Announcements over Covid-19 strains and lockdowns by the UK government will also need to be positive to ensure the Pound continues to accumulate above 1.40.