Tomorrow’s UK unemployment data the key for GBP/EUR this week (Mike Vaughan)

Pound to Dollar Rate Pushed Higher by Falling Covid Cases and Weak Dollar

Sterling has had a good start to the second quarter of the year having shifted through 1.21 at the tail end of last week, a two cent swing in the pounds favour since the end of March providing some good buy opportunities for those in a position to take advantage.

Looking at the data for the rest of the week and we have some inflation figures this morning at 09:30 followed by Euro Zone trade balance figures at 10:00 however the major release for this pair in my opinion will be Wednesday’s unemployment data.

Levels are expected to fall from 7.2% to 7.1% with some even predicting a bigger fall to 7%. With Mark Carney and the Bank of England indicating levels need to be at 7% and below before they may consider raising the UK’s base interest rate then any shift towards the 7% target is likely to be positive for the pound.

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