The pound closed out April as one of the worse performing major currencies of the month on Friday ahead of the long weekend, after being stuck in a muted pattern for a number of days. GBPUSD is trading just over 1% off the April high, with GBPEUR faring much worse at around 2.3% off of the monthly high.
Over the last week, we wrote on numerous occasions around how the Scottish Parliament votes have kept GBP under wraps. With fears of a second push for Scottish independence off the back of the vote on Thursday, pound traders will be watching events unfold.
In spite of the above, things have the potential to start looking up for the pound this week. Also, on Thursday, the Bank of England’s Monetary Policy Committee meet for the interest rate decision for the coming months. Whilst rates are expected to remain at the record low rates, analysts will be monitoring the following press conference for thoughts on what lays ahead for the UK and the pound. Should Andrew Bailey and the team follow a positive sentiment, the pound of course has the potential to gain. Coupled with reports that vaccine supplies are due to increase in May, this month has potential to be better than the last. Reports are saying that after a lacklustre April, the rollout should continue to power on and get second doses to the most venerable whilst getting more first jabs to more of the population.
Have a great day.
Jack Nicholls, Relationship Manager.
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