The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
Both releases printed in line with expectations, with the bloc’s latest GDP estimate indicating the Eurozone economy rebounded sharply in the second quarter.
EUR exchange rates also benefitted from optimism over the EU’s vaccine rollout, which has now seen over 70% of adults receive a jab.
However, the euro’s gains were capped as demand for the single currency was undermined by a sharp rise in the US dollar, due to the strong negative correlation in the world’s most traded currency pairing.
An upwardly revised German GDP reading has lent some support to the euro in the first half of this week’s session, offsetting some initial pressure following a report from Germany’s Bundesbank in which is warned German economic growth is likely to fall short of its 2021 forecasts due to the Delta variant of the coronavirus.
Looking further ahead, the euro could extend its bullish moment if the US dollar continues to retreat from its recent highs this week.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)