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The British pound managed to take down most of the major currencies at the close of Friday.

After a Monday spike higher thanks to comments from Bank of England Deputy Governor Dave Ramsden on a likely floor on interest rates, Sterling was choppy with some downward pressure against risk currencies For the rest of the week. This was likely due to global risk sentiment leaning positive, and likely on concerns with Brexit and the rise in COVID-19 cases.

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:

Ministers consider ‘total social lockdown’ amid claims pub curfew doing ‘more harm than good’

Bank of England’s Ramsden sees floor for rates above zero

Britain will work to make progress in EU talks but gaps remain, says PM’s spokesman

UK’s Gove says Brexit treaty undercut clauses will remain in bill

Britain, EU start key week of Brexit talks with ‘better mood music’

EU says positions on Brexit ‘far apart’, talks must quicken

UK eyes tougher COVID-19 restrictions for England as outbreak spreads

Tuesday:

Britain’s Johnson targets skills after COVID reveals shortage

Hopes of deal rise as EU says it is ready to work on legal agreement

UK mortgage approvals soar to 13-year high in August

Net consumer credit borrowing remained positive in August at £0.3B, following a +£1.1B in July; the flow of money (M4ex) was -£0.9B in Aug. vs. +£25.6B in July.

Bank of England realistic about challenge of sub-zero rates for banks, Bailey says

Wednesday:

U.K. shop prices continue to fall as retailers try to woo back shoppers

UK annual house price growth picked up to 5.0% in September, the highest rate since Sep 2016

UK GDP collapsed nearly 20% in second quarter in historic COVID hit

UK Business investment fell by 26.5%, in volume terms in Q1 2020

The UK current account deficit narrowed to £2.8B in Q2 2020

Haldane joins BOE pushback on negative interest-rate speculation – it seems that comments from another BOE official against negative interest rates was enough for Sterling bulls to overcome net negative U.K. economic updates.

Thursday:

Choppy session for Sterling pairs as we saw an initial drop during the London session, likely on news that the EU launched legal action against UK for breaching Brexit deal and international law.

We then saw a turn to the upside, correlating with news that the UK manufacturing recovery continued in September as output and new orders rise again. We also got comments from Boris Johnson’s spokesman that UK-EU trade talks conducted in constructive spirit.

‘Follow the rules’: Boris Johnson urges Brits to stick to the Covid plan to avoid a full lockdown

Friday:

We saw a broad spike in the British pound against the majors, correlating with the reaction to U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19. Based on the price action across the major currencies, the reaction in Sterling was a mix of counter currency weakness and risk aversion behavior.

EU wants Brexit deal, but not at any price, says Commission chief

Mid-October still goal for EU trade deal, says UK PM’s spokesman

No breakthrough, but Brexit deal still possible, Merkel says