London RationalFX

RationalFX: Improved Risk Appetite Strengthens Sterling

RationalFX: Sterling strengthened on Tuesday against the Euro and Dollar as risk appetite increased among investors due to the number of cases of Covid19 falling across the board …

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Furthermore investors are now turning their attention to Federal Reserve and European Central Bank meetings this week when officials could announce further stimulus to ease the impact on their economies of the coronavirus crisis.The pound is likely to react to how the U.K. eventually eases lockdown restrictions but British Prime Minster Boris Johnson will announce a plan in the coming days.

Sterling has been closely correlated with riskier assets, such as stocks, and when investor risk appetite increases, the pound tends to move up. The pound moved higher against the euro in the early trading hours but remained stable after the Confederation of British Industry said British retailers suffered their biggest fall in sales since the 2008 financial crisis in the first half of April.

Key Announcements

12:30 – USD – Advance GDP q/q – Forecast at -4% from previous 2.1%

6:00 – USD – FOMC Statement

6:30 – USD – FOMC Press conference

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