- Pound (GBP) advances on signs of pent up UK consumer demand
- Boris Johnson looking to agree cross EU exemption to travel quarantine rules
- Safe haven US Dollar (USD) slips after impressive US jobs data
- At 07:15 UTC, Pound to US Dollar (GBP/USD) trades at +0.3% at US$1.2710
The Pound is adding to 2.5% gains from the previous week as trading kicks off on Monday. The Pound US Dollar exchange rate settled on Friday at US$1.2665, having struck a 3-month high of US$1.2732 earlier in the session.
At 07:15 UTC, GBP/EUR is trading +0.3% at US$1.2710. Optimism surrounding the reopening of the UK economy is driving the Pound higher, whilst broader risk on sentiment is dragging on the safe haven US Dollar.
According to market researcher Springboard, UK consumers are showing signs of high pent up demand, as some stores reopen and ahead of the final reopening of bricks and mortar shops across the UK on 15th June.
Adding to the positive mood surrounding the easing of lock down measures, Boris Johnson is said to be keen to agree a cross -EU exemption to travel quarantine rules. This would allow Britons to visit EU countries without isolating for 14 days and EU visitors would be entitled to do the same here. This move could help lift the UK travel and tourism sector off its knees. Good news for the economy after months of lockdown.
There is no high impacting UK economic data due to be released today. The UK economic calendar is light until later in the week with GDP, manufacturing and industrial production data.
A surprising improvement in the US labour market on Friday has boosted sentiment and pulled on the safe haven US Dollar. 2.5 million jobs were created in the US in May, astonishingly ahead of the -8 million job losses that analysts were forecasting. The data shows that he US economy is in a better place than expected, boosting demand for riskier assets and currencies whilst pulling on the safe haven US Dollar.
There is no high impacting US economic data today. Investors will look ahead to the Federal Reserve monetary policy announcement on Wednesday, for the Fed’s take on the health of the US economy.
