GBP : Latest

(Tue, 16 Feb 2021).

GBP/USD STILL AIMING HIGHER, EUR/GBP LOWER

The strong performance of UK assets, including both the British Pound and London-listed stocks, shows no signs of faltering as the UK continues to vaccinate people against Covid-19 at a faster pace than most other countries – raising the likelihood that the economy will be among the first to open up.

Speaking yesterday, Prime Minister Boris Johnson said the Government’s plan to move England out of lockdown will be "cautious but irreversible" and he is due to set out a roadmap for ending restrictions next Monday. That follows figures releasedyesterday showing a 29% drop in the number of positive cases across the country, down to 9,765 – the lowest figure since October 2. The Government also said it has met its target to offer a vaccine to the 15 million most vulnerable people across the UK.

In response, GBP/USD continues to strengthen and may well tackle “round number” resistance at 1.40 in the next few days.

GBP also continues to strengthen against other currencies, with continuing gains for GBP/CHF, GBP/JPY, and GBP/AUD. In particular, it is looking strong against the Euro, with EUR/GBP sliding on the likelihood that the UK economy will open up sooner than the Eurozone economy, and that trend too looks likely to persist.

DISCLAIMER ON

GFS ASIA TEAM

• 0
• 0
• just now
• 0