Opening up the fresh week and looking at the charts, we can see that GBPUSD has breached and remained above the psychological level on 1.40. You would have to go back to February 25th for the last time to see rates at this level, the pound has a couple of key factors which have allowed it to run higher.
Despite the Scottish National Party winning the regional elections, the party fell short of gaining an overall majority. Pro-independence was the main talking point about these elections and it appears there will be a collision with the Green Party. Although this could still equate to a push for an independence, analysts are predicting it will not be as immediate as Nicola Sturgeon is reportedly focusing on the Covid pandemic first.
Boris Johnson will also give a statement today, which is expected to be on the next stage of lifting restrictions for England. Expected to follow the original plan, that indoor hospitality and indoor mixing allowed between more than one household can resume. Markets like the easing of restrictions and with moves such as this, the pound should see strength as the population starts to get out of the house and spend their salaries in more places.
On the other side of the coin, non-farm payroll figures missed expectations in the US on Friday. 266,000 new jobs were created in the market for April, whereas nearly 1 million were expected, which gives the sell off of the dollar legs into today.
The calendar today is a quiet one and headlines will guide the price, with the next upside level after 1.4080 is 1.4140 on the charts.
Have a great day.
Jack Nicholls, Relationship Manager.
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