Sterling continues to press higher at the start of the week, with more positive vaccine news coming from Oxford University and pharmaceutical giant AstraZeneca. Headlines state that the vaccine can be up to 70% effective in stopping an individual developing Covid-19, however the BBC is reporting that data also shows “perfecting the dose could increase protection up to 90%.” Despite the figure not being as effective as Pfizer and Modena, this vaccine is reported to be cheaper to store and easier to deliver to the front line. The UK Government has 100 million orders of the new vaccine, meaning that should final sign off be given, the UK will be front of the queue for any deliveries. This has prompted UK health secretary Matt Hancock to say this morning that “we could be back to normal some time after Easter next year”.
Prime Minster Boris Johnson will address Parliament today, with plans on how England is expected to come out of the one-month national lockdown. The pound continued to push higher as non-essential shops, gyms and pubs have been cited as allowed to reopen. It is a major boost for the UK economy, with Christmas around the corner.
Finally, the mood music surrounding Brexit continues to improve. Sky News is reporting on confidential notes that top European diplomats think the Brexit agreement is 95% complete. This could be a similar rhetoric we have previously seen however, with the three main sticking points of fisheries, governance, and the level playing field remaining, with 38 days remaining before the year-end deadline.
GBP/EUR is currently trading close to a level which has been an area of resistance since June. The 1.1280 mark is closely on the horizon, a point which has been touched four times before being sold off. GBP/USD is trading near a high not seen since the opening days of September. Previous to that, you have to go back to December 2019. Please reach out to your account manager or contact us, to see how you can take advantage of the positive movements we are currently seeing.
Have a great day.
Author: Jack Nicholls, Relationship Manager.
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