Welcome to Orbis Exchange Group’s market update.

22-28th March 2021

Where you will be able to keep up to date with all the latest changes in the currency market.

Updating information

Great British Pound

The UK government hit record borrowing numbers this February as the pandemic continues, although figures were lower than analysts’ expectations.

Another record in this timeframe has been made

These records began in 1993, and last month borrowing figures were at £19bn. Another record in this timeframe has been made, as government borrowing for the year to date is £278.8bn says the ONS. The hospitality sector pursues to see struggles as Wetherspoons boss has spoken, and cries for an end to this “mayhem” lockdown strategy. The chain has been hit with significant losses totalling £68m.

Further, the Bank of England has not adjusted their interest rates, as it remains at a record low of 0.1%

Last thing banks want to hear

Views remain contrasted about the UK’s movements forward. Andrew Bailey had talked previously of being “optimistic, but cautious” in an interview. On the other hand, a chief economist referred to the economy as a “coiled spring”. Equally, he described it like a “inflationary tiger” emerging, but this is the last thing central banks want to hear. 

Drop in employment

Another drop in employment is expected with a -114K loss in employment. It is said that Boris Johnson’s roadmap was released too late to save February figures. The BoE mentioned that the furlough scheme extension would cap their unemployment expectations. It is clear however that there is underlying damage to the economy.

Termination of employment

Despite the AstraZeneca vaccine set to be reversed after a week-long halt, European vaccinations delays in March leave them behind the UK and US still in the rollout count.

In fact, the United States are said to be a whole six months ahead of the EU, as they are set to be back to pre-crisis output levels by the end of 2021.

Covid-19 vaccine
Friends toasting in a restaurant, celebrating.

Due to this, the UK is likely to be celebrating the summer months as Matt Hancock states we are on route to hitting all roadmap dates successfully. Whereas the EU economy will have to skip the summer months before fully reopening.

The EU went ahead with its lawsuit over the UK extension to Northern Ireland border goods checks.

The calendar is light for the Eurozone this week, but the pound has the latest employment figures tomorrow with the inflation rate released a day later. Eurostat statistics highlighted exports to the UK dropped by 27%. Policymakers worsened this, by dragging Brexit talks to the wire and giving companies no time to prepare. British exports were worse as a plummet of over 50%.

Gavel and euro money.
Multiracial group of people protesting against lockdown

US Dollar

The US department of labour released the counting jobless claims. This saw the number of individuals who are unemployed and are currently receiving unemployment benefits.

Negative implications for consumer spending

A rise in this, has negative implications for consumer spending which is discouraging any form of economic growth. The US Department of Treasury is implementing short-term securities that will mature in one year or less.

A bag with the word Debt and an up arrow in the hands of a businessman

These will not be attractive to investors as it will show a strong indication of the government’s debt situation.

This week we will see information on shipments, new orders etc by the Federal Reserve Bank of Richmond

which will show all the current activity in the manufacturing sector. The industry inflation can be seen from this survey.

Close up of investors around savings deciding where to invest


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