Good morning,

Despite a slight sell off against both the euro and dollar this morning, the pound continues to hold near the top end of the daily ranges versus both of the major currencies. Given the fact that the UK continues to power through the vaccination programme, with nearly 550,000 citizens receiving their first dose in the latest daily figure, it is hard to see where sterling bears will get their momentum for the time being. Boris Johnson is due to give an update on lockdown restrictions two weeks today, Monday 22nd February. Combined with last Thursday’s Bank of England meeting, where Andrew Bailey effectively dismissed a sub-zero interest rate, the situation for the pound appears to be a lot brighter than in months gone by.

On Friday, non-farm payroll data released from the States came in lower than expected, giving GBPUSD a near 1% boost heading into the end of the week. This week the calendar is looking a lot lighter compared to last, with UK GDP releasing Friday being the biggest release for pound traders.

One troubling development from the weekend saw AstraZeneca announce their vaccine has “minimal protection” against mild infections of the South African variant of Covid. With 100m doses of the vaccine on order, it is the largest with one supplier, which has been shown to not be as effective as hoped in preliminary findings. The government has said however that the findings shows the vaccine still stops fatality and serious illness.

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.

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