GBP/USD has rebounded from the 1.3670 lows seen last week, retracing losses for the sixth straight session and currently treading water above the 1.3980 mark this morning. Following a milestone 10 million vaccinations, positive vaccine sentiment in the UK has allowed GBP/USD to break through the 1.40 barrier this morning for the first time since the March swing-highs.
Matt Hancock outlined yesterday that the UK would be adding India to the no fly “red list” amongst fears of new COVID-19 variants.
“From 04:00 BST on Friday 23 April, most people who have travelled from India in the last 10 days will be refused entry. British or Irish passport holders, or people with UK residence rights, will be allowed in but must quarantine in a government-approved hotel for 10 days.”
Any fresh news of vaccine roll-out successes, or further tightening of travel restrictions will likely see further support for GBP.
USD is coming under further pressure this week, despite an uptick in yields and flurry of positive US data out last week. CPI, retail sales, and unemployment data all came in well above expectations. This provided little support for the dollar, which has shown declines across the board. EUR/USD is holding strong to gains above 1.20.
A light data day today will see analysts and traders look to the headlines for further indication on market movement.
Have a great day,
James Camp, SME relationship manager
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