GBP price, news and analysis:
- The outperformance of UK assets, including both GBP and the FTSE 100 index, shows no signs of faltering just yet.
- That’s based on the swift rollout of Covid-19 vaccinations in the UK and comments by the Prime Minister that the Government’s plan to move England out of lockdown will be “cautious but irreversible”.
GBP/USD still aiming higher, EUR/GBP lower
The strong performance of UK assets, including both the British Pound and London-listed stocks, shows no signs of faltering as the UK continues to vaccinate people against Covid-19 at a faster pace than most other countries – raising the likelihood that the economy will be among the first to open up.
Speaking yesterday, Prime Minister Boris Johnson said the Government’s plan to move England out of lockdown will be "cautious but irreversible" and he is due to set out a roadmap for ending restrictions next Monday. That follows figures releasedyesterday showing a 29% drop in the number of positive cases across the country, down to 9,765 – the lowest figure since October 2. The Government also said it has met its target to offer a vaccine to the 15 million most vulnerable people across the UK.
In response, GBP/USD continues to strengthen and may well tackle “round number” resistance at 1.40 in the next few days.
GBP/USD Price Chart, Hourly Timeframe (February 4-16, 2021)
Source: IG (You can click on it for a larger image)
GBP also continues to strengthen against other currencies, with continuing gains for GBP/CHF, GBP/JPY, and GBP/AUD. In particular, it is looking strong against the Euro, with EUR/GBP sliding on the likelihood that the UK economy will open up sooner than the Eurozone economy, and that trend too looks likely to persist.
Johnson will be questioned about his plans at a 1700 GMT press conference.
EUR/GBP Price Chart, Hourly Timeframe (February 4-16, 2021)
Source: IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | -14% | 12% | 0% |
| Weekly | -29% | 61% | 7% |
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
