Last week the Pound saw a drop in its value against the Euro due to traders switching their attention from Brexit back to UK fundamentals where sentiment has taken a blow following the announcement of a third lockdown across the UK.
Thus, making the GBP the worse performing currency of 2021 when it dropped to the 1.10 threshold.
However, GBP/EUR recovered through the second half of the last week due a positive development in Britain’s vaccination program which could continue to support Sterling throughout this week.
The US Dollar finished the week higher, even as the December US jobs report came in worse than expected with the first jobs loss since April.
The economic calendar during the second week of January will provide some key insights into the US economy.
There is scheduled to be five speeches from Fed policymakers, including one from the Chair Powell, it’s likely that the US Dollar will see several opportunities to weaken through the week as these speeches commence.