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Daily market commentary: Today’s sterling weakness can be attributed to a delay in the lifting of the social distancing measures in the UK
The pound is losing ground against both the euro and the dollar during early Monday trading. Today’s moderate sterling weakness can be attributed to market expectations of a delay in the lifting of the social distancing measures still in place in the UK, which was scheduled for June 21. According to reports in the press, Boris Johnson will later today announce that the final stage of lifting Covid restrictions will be postponed for four weeks, following a sharp rise in new cases of the disease since early June. It is unlikely that the formal announcement of the delay will trigger any sharp currency movements, as it won’t come as a shock. However, should Johnson surprise the markets by confirming the end of restriction on June 21, the pound would be likely to reverse this morning’s losses.
European shares edged significantly higher at the start of a new week, amid strengthened market sentiment following a G7 meeting showing unity among leaders. Even if many issues remain on the international scene (Brexit, climate change, relationship with China etc.), investors were happy to see world leaders willing to work together to solve them. This positivity has been reflected on all EU markets this morning with most indices now trading above key resistance levels, with all sectors in the green. With no significant macro release on the agenda, today’s session is likely to remain technical. Madrid is one of the best performers with the IBEX-35 Index challenging its major resistance level between 9,255pts and 9,265pts. The next target can be found towards 9,320pts and then 9,390pts.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
