Last year didn’t really go to plan. The first case of COVID-19 was identified in Wuhan, China in December 2019, but nobody could have predicted the global impact that this would have on economies, nor the political and social impact.

Our Quarterly Report provides context on the UK, US and Eurozone markets of last quarter and highlights what we believe will be the focus of each of these regions over the coming months.

In this report we will focus on the worldwide vaccine rollout, the new leadership in the United States and the resulting effect on volatility.

In this paper we will highlight some of the key factors that could drive GBP, EUR and USD exchange rates over the coming months as well as displaying institutional forecasts on GBPUSD, GBPEUR and EURUSD.

For the currency markets it was a year of two halves, in large driven by the US Dollar. The first phase saw large scale Dollar strength as the market deciphered the COVID pandemic, resulting in a bout of risk aversion and subsequent US Dollar strength.

The second phase was a prolonged bout of US Dollar weakness as the market determined the Federal Reserve’s change in inflation policy, and the dawn of a new administration as opinion polls turned sour for President Trump.

UK/EU trade talks continued to ebb and flow and, in some cases, provided a thorn in the side of Sterling. However, a deal was struck at the end of 2020 and passed by the respective UK and 27 nations of the Eurozone.

Read the full report: IIFX_Economic Outlook_Q1 2021

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This blog post is intended to provide you with information on the services Infinity International Limited (IIFX) offer and should not be interpreted as advice or as a solicitation to offer to buy or sell any currency or as a recommendation to trade. Foreign exchange rates provided therein are for indicative purposes only and are not intended to give an accurate reflection of current currency exchange rates or to predict future movements in currency exchange rates. IIFX is a company registered in England with registered number 06333730 and registered address at Third Floor, 24 Chiswell Street, London, United Kingdom, EC1Y 4YX. IIFX is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 (FRN: 567835) for the provision of payment services. IIFX is authorised and regulated by the Financial Conduct Authority in the conduct of designated investment business (FRN: 671108).