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09July 2020

Sterling received a boost after the UK Chancellor unveiled an ambitious £30 billion stimulus package to spur economic growth, which included a £2 billion kick-start scheme to create more jobs for young people. The Chancellor also announced a bonus scheme for companies that re-hired furloughed workers and introduced a stamp duty holiday on properties. The measures were consistent with expectations.

Sterling momentum received a further boost by optimism over a possible breakthrough in the post-Brexit negotiations. The EU Chief Negotiator, Michel Barnier recently said Brussels is ready to grant the City of London access to EU Markets.

The US Dollar came under renewed selling pressure as market sentiment turned positive. Despite the growing fears over a possible second wave of Covid-19 cases, hopes of a swift economic recovery underpinned the global risk sentiment.

The only release of note in the European docket is German Trade Balance Figures. From the US, the release of Initial Weekly Jobless Claims will no doubt garner attention.

 

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Please note that this update is provided by Fexco Corporate Payments for your information only. It does not constitute advice. You must rely entirely on your own judgement when making an Order and entering into a contract with Fexco Corporate Payments and any decision you make to buy and/or sell currency is made solely on your own judgement. Fexco Corporate Payments  is regulated by the Central Bank of Ireland and is regulated by the Financial Conduct Authority for the conduct of payment business in the UK

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