The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
The US dollar enjoyed considerable demand at the start of last week as a dramatic emerging market sell-off in light of Turkey’s financial woes prompted markets to flock to safe-haven currencies.
In combination with some stronger-than-expected US retail sales figures, this demand helped to drive the dollar index to a fresh 13-month high on Wednesday.
However, the second half of the week brought a change in fortunes for the US dollar, with USD beginning to fall back as market risk appetite perked back up.
This came as a result of media reports that Beijing would be sending a delegation to the US for low-level trade talks this week, which cut safe-haven demand and weaken USD exchange rates.
The US dollar may remain on the back foot this week if a positive outcome in US-China trade talks helps to further cool global trade tensions.
However USD could still see some gains following the release of the minutes from the Federal Reserve’s latest policy meeting, especially if they help to bolster expectations that the Fed will implement another two rate hikes this year.
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)