Coronavirus continues to grip the UK

21 September, 2020

Ashley Finill

This week could be a pivotal week for the UK with the Coronavirus continuing to take it’s grip on the nation with the number of cases rising at an alarming rate. The government and its scientific advisors are set to meet this week to discuss another potential lockdown. Should another lockdown be put in place this could have a serious knock-on effect for Sterling as we saw with the last lockdown with the Pound losing over 10 cents against the Euro and US Dollar. With Sterling already in a very fragile position with Brexit trade talks taking place with seemingly no breakthrough on a agreement any nearer and the threat of a very possible no deal Brexit come the 15th of October these next few weeks are vital for Sterling’s fortunes.

Should a no deal Brexit be a reality come the 15th of October then there is a real possibility that parity with the Euro could be a reality. As we have seen historically with a threat of a no deal Sterling has reacted negatively going into freefall. Should you have a requirement for euros coming up within the next couple of month it may be prudent to look at your options with a forward contract being a great mechanism to lock in your currency in advance and avoid any nasty surprises in this unpredictable time we are in.

The week ahead

12:30 USD Chicago Fed National Activity Index (Aug)
16:00 USD Fed’s Brainard speech
22:00 USD Fed’s Williams speech
00:30 AUD RBA’s Debelle speech
07:30 GBP BoE’s Governor Bailey speech
10:00 GBP CBI Industrial Trends Survey – Orders (MoM)(Sep)
12:00 EUR ECB’s Panetta speech
14:00 USD Existing Home Sales (MoM)(Aug)
14:00 USD Fed’s Chair Powell speech
14:00 EUR Consumer Confidence(Sep) PREL 
23:00 AUD Commonwealth Bank Services PMI(Sep) PREL   
23:00 AUD Commonwealth Bank Manufacturing PMI(Sep) PREL   
01:30 AUD Retail Sales s.a. (MoM)(Aug) PREL   
02:00 NZD RBNZ Rate Statement  
02:00 NZD RBNZ Interest Rate Decision  
06:00 EUR Gfk Consumer Confidence Survey(Oct)  
07:15 EUR Markit Manufacturing PMI(Sep) PREL   
07:15 EUR Markit Services PMI(Sep) PREL   
07:15 EUR Markit PMI Composite(Sep) PREL   
07:30 EUR Markit Manufacturing PMI(Sep) PREL   
07:30 EUR Markit Services PMI(Sep) PREL   
07:30 EUR Markit PMI Composite(Sep) PREL   
08:00 EUR Markit Manufacturing PMI(Sep) PREL   
08:00 EUR Markit Services PMI(Sep) PREL   
08:00 EUR Markit PMI Composite(Sep) PREL