Weekly Briefing 23/07/20

Good Morning,

A few murmurs of discontent from individual countries over the recovery fund didn’t hurt the euro as it traded up above 1.16 against the dollar, a level not seen for nearly two years.

The closure of the Chinese consulate in Houston and continuing worries on the economic impact of the surge of Covid-19 cases in the US dampened the dollar and helped sterling establish levels above 1.2725.

Worries concerning a no-deal Brexit are remerging as this week’s talks conclude today with the outlook on progress appearing gloomy. Reports say that an emergency round of talks will be held next week in an attempt to make a breakthrough. The prospect of leaving the EU without a deal is weighing on the pound and it is trading down below 1.10 on a consistent basis.

Later today Jonathan Haskel from the BoE’s Monetary Policy Committee will give a speech and traders will be listening for any hint on a negative interest rate policy and this would be a catalyst to sell sterling.

Today the latest weekly US employment data is released. This week’s numbers will come under extra scrutiny as they will include detailed monthly non-farm payroll data.
Support and resistance levels

GBP/USD Support 1.2807 Resistance 1.2783
EUR/USD Support 1.1517 Resistance 1.1654
GBP/EUR Support 1.0896 Resistance 1.1103

On This Day…

On this day in 1955, Donald Campbell broke the world water speed record on Ullswater, in the Lake District. His jet-propelled hydroplane, Bluebird, reached 202.32mph. Sadly Donald Campbell perished on 4th January 1967 when his hydroplane flipped whilst he was attempting to break his own record on Coniston Water. His body was never recovered however his mascot Mr Whoppit floated free and was recovered. He remains the only person to set both land and water speed records in the same year.

Have a great Thursday!