Good morning,

Yesterday was a great day for the pound. As mentioned in yesterday’s update, the way that the Scottish regional elections played out over the weekend reduced the risk of a second Scottish Independence vote, and gave the pound legs to run higher, which is exactly what it did. Coupled with Boris Johnson’s confirmation that the next stage of reopening will go ahead as planned on the 17th of May, Monday saw the pound open versus the US dollar at the 1.40 level, but by days end it had continued to move higher, adding a further 1% to the 1.4130 level where it has held overnight. We saw a similar story for the pound versus the euro with a move from the low 1.15’s through to 1.1630 throughout Monday where is still currently sits. The key for the pound now is how the public take the new freedoms and support the UK’s economic recovery.

Yesterday also saw the EURUSD rate continue a fairly consistent move higher where it hit 1.2160 and a level last seen 10 weeks ago in late February. Some of this can be put down to a continuation of Fridays poor Non-Farm Payrolls number which came in well off expectations

Today is again quiet on the data points although there will be interest in the Bank of England’s Governor Bailey’s speech later today to guide us further on economic outlook and any comments around the ease up our stimulus plans before UK Q1 GDP is released tomorrow.

Chris Allan, Senior Relationship Manager.

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