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7th June - Weekly FX Update

GBP/EUR

Monday 9AM 7th June: 1.16278

The Euro struggled to find any strength last week and is looking eagerly to the ECB meeting Thursday for some reassurance. Christine Lagarde, the ECB president, could potentially be considering reducing the current support for the economy. The Euro will certainly benefit from any positive direction from the ECB, as the countries that are exiting their support programmes are seeing the associated currencies perform better compared to those that are sticking to low interest rates and generous quantitative easing. As the UK cautiously approaches its June 21st roadmap exit, the Pound will be very volatile to any significant news and announcements by the government.


GBP/USD

Monday 9AM 7th June: 1.41402

The Dollar regained some ground last week over the Pound as there seems to be growing support from the Fed to reduce their bond buying, which is currently worth approximately $120 billion per month. Unemployment claims in the U.S. also dropped which added to last weeks dominance from the Dollar. The rate has since steadied and is back to trading where it started last week, despite a rise in UK Covid-19 cases. As June 21st looms, any shift in the stance of Britain's last stage of its exit roadmap will prove very costly for the Pound. For the GBPUSD to continue its upward trend, a steadying in UK Covid-19 cases is essential. Inflation figures for the U.S. are also expected to be released on Thursday, and any miss will also be very beneficial for the Pound.