Despite a small sell off to kick start the day, the pound continues to rally on positive momentum that is expected for the UK economy. Currently sitting at 1.1471 against the euro and 1.3937 against the dollar at the time of writing, the positive drive is starting to build again. This makes GBP the second strongest currency for 2021.
Speculation is mounting for how the UK government will ease lockdown restrictions, which are due to be announced next week. Boris Johnson spoke yesterday where he said the next move made by the government to move from the current lockdown will be “cautious but irreversible”. After reaching the target of vaccinating 15 million people within the UK, pressure has been growing to reopen schools and allow kids to get back to the classrooms.
Eurozone GDP data is to be released at 10am, as ever any fluctuation from the expected figure could weigh heavily on the exchange rate. Analysts predict it to be a poor release, as most of the continent is under Covid restrictions.
The next big barrier for GBPUSD is the key 1.40 level and the 1.1508 mark for the euro should the rally continue.
Have a great day.
Jack Nicholls, Relationship Manager.
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.