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The British pound was a big net loser on the week thanks to both no-deal Brexit fears and disastrous U.K. economic updates.

Its gains were only against the euro and Swiss franc, both of which were feeling a little extra pain off of Europe’s own terrible economic & sentiment updates.

Overlay of GBP Pairs: 1-Hour Forex Chart
Overlay of GBP Pairs: 1-Hour Forex Chart
GBP Weekly Performance from MarketMilk
GBP Weekly Performance from MarketMilk

United Kingdom Headlines and Economic data

Monday:

BoE’s Woods says banks have enough lending capacity in pandemic
UK consumers are gloomiest since 2012: YouGov/CEBR


A fresh round of global economic news (global factory activity sinks to new lows) and renewed tensions between China and the U.S., had traders leaning in risk-off mode to start the week, likely contributing the pound’s net negative start on Monday.

Tuesday:

Ireland sees crisis point in Brexit talks if no progress soon – Coveney
U.S., UK launch post-Brexit video trade talks amid coronavirus recession
UK Services PMI falls sharply to 13.4 in April vs. 34.5 in March
UK new car sales plunge 97% to lowest level since 1946

Wednesday:

Survey-record decline in UK construction work amid site closures due to COVID-19 pandemic

Thursday:

Bank of England scenario shows U.K. economy falling 14% this year – a bullish reaction to the BOE as this continue to hold off from quantitative easing measures, but the pound soured as the session went on as the BOE gave their dire outlook on the economy.
BoE waiting to see how much lockdown lifted before QE decision: Bailey
No sign Britain wants EU trade talks to succeed – EU trade chief
Britain heading for a limited easing of lockdown next week
UK House prices fall -0.6% in April as coronavirus restrictions take hold


Global risk sentiment shifts positive during the late U.S. session, likely on the recent theme that more economies were the path to end lockdown restrictions.  Better-than-expected Chinese trade data and more positive news on Gilead Sciences’ COVID-19 drug remdesivir likely played a factor as well, correlating with Sterling’s bullish reversal against the ‘safe havens’ into the Friday session.

Friday:

U.K. GfK consumer confidence index up from -34 to -33 vs. -37 forecast
Positive global risk sentiment, likely a continuation of Thursday’s drivers,  had Sterling gaining a bit more against the safe havens, but still ending up as a net loser against the major currencies.