Since last Wednesday we have seen a nice increase in the strength of the Pound versus the Euro. The rate has been technically range bound since February and the rate is creeping towards the top end of that range as we comment. It would appear that all the fears around the Covid resurgence are now priced in an normality has resumed. Whilst the daily number of cases remains relatively high, the hospitalisation rates remain relatively low. Therefore it appears both the vaccine programme and the booster programme are working. This looks to have been the main brake on the Sterling rate. The ECB president, Christine Lagarde is addressing the markets later this afternoon so maybe this will have an effect on the rate.
Against the Dollar it’s less appealing, so anyone wishing to move Dollar to Sterling, this looks to be a fairly optimal time. The overall “risk off” approach we are seeing at the moment favours the Greenback. This is true of the EUR/USD rate also therefore it’s not just Sterling that’s a bit down in the dumps versus the Dollar.
We have been asked to report on the Swedish Krona recently as there has been a significant uptick in international property sales between Sweden and Spain recently. Against both the Euro and the Pound the rate has been relatively range bound with the Krona being slightly stronger versus the Euro.
Looking ahead to the rest of the day we have the previously mentioned ECB commentary later as well as the ISM Services data out from the States mid afternoon.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
US: 14:00 ISM Services PMI
EUR: 15:00 ECB President Speech
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