- Posted by currencies in Bank of England, Brexit, coronavirus, Currency, Dollar, Economy, EUR, GBP, Prime Minister, Sterling, UK, Uncategorised
- April 16, 2021
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The British Pound came under pressure against the Euro this morning; declining more than 2% in April alone. However, a still-positive technical setup and solid underlying fundamentals which could encourage a recovery in the near-term. There was no discernible news to pin the declines on, but more and more analysts are awaking to the prospect of rising political anxieties related to the Scottish elections due in May.
As it stands, the Scottish National Party remains on track to attain a majority in the upcoming elections. Nicola Sturgeon, the leader of the SNP part implies she will encourage another independence referendum. It is worth noting that the Scotland did vote to remain within the EU at time of Brexit referendum and the possibilities of a vote to support Scottish independence has increased due to this vote in 2016.
The US Dollar gained ground following a series of strong economic statistics. Retail Sales jumped by 9.8% in March as Americans armed with stimulus checks stormed the stores. The more recent jobless claims figures for the week ending April 9 were also encouraging, printing a drop to 576,000 – the lowest post-pandemic level. Only industrial output figures disappointed.
While Treasury yields surprisingly dropped – probably due to fresh demand from Asia – the dollar shrugged off this move and responded to the data. On Friday, the last consumer figure for the week is eyed – the University of Michigan’s preliminary Consumer Sentiment Index for April.