Brexit and supply chain concerns continue to cause sterling woes
Last week saw the dollar showing strong gains across the board, with the currency gaining around 1% and both EUR/USD and GBP/USD hitting fresh YTD lows – below $1.16 and $1.35 respectively. Sterling finally saw some strength on Friday having taken a hammering all week.
As we get underway this morning, despite having been below the midpoint of 1.34-1.35 last week, GBP/USD opens around the 1.3550 mark. The improved tone to sterling on Friday is also reflected in GBP/EUR starting this week above the 1.1650 mark, whilst EUR/USD is operating at the $1.16 handle.
As we look ahead this week, the UK will be under scrutiny regarding supply chain concerns and general Brexit newsflow. On the data side, traders will be heavily focused on the US labour market data due Friday. Meanwhile, the minutes from the September ECB monetary policy meeting are also due.