Pound Sterling Rebounds As UK Government Unveils Re-Opening Plans, USD Stays Pressured
Login

Pound Sterling Rebounds As UK Government Unveils Re-Opening Plans, USD Stays Pressured

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

Prime Minister Boris Johnson today unveiled plans to gradually ease the lockdown measures, adding to the optimism. The cable is back above 1.40 and hitting a fresh 34-month high of 1.4052 after briefly falling to 1.3980 in early European deals on Monday.

On Monday, the UK government released a document detailing its plan to ease the coronavirus-related isolation measures. “The lockdown roadmap is divided into four phases with a minimum interval of five weeks between each step,” and one of the key steps states: “People should continue to work from home until the results of a social distancing survey are available, which, is expected to be completed by June 21,” 

Prime Minister Johnson, meanwhile, said that “we will draw up a plan of action to gently pull us out of lockdown,” with the top priority of reopening schools. The UK has gained a pioneering advantage in terms of getting covid shots, and now about 25% of the population is vaccinated with the first dose. This factor continues to support sentiment around the pound.

Reflationary trading amid optimism about the vaccine and stimulus continues to benefit the risky asset, the pound sterling, as investors ignore reports highlighting the impending Brexit risks. Markets remain focused on reflationary trading, awaiting fresh news on a potential US stimulus deal. The main event of the Pound Sterling remains the speech of British Prime Minister Johnson, in which he charted a way out of isolation.
USD Stays Pressured With a Bias to the Downside
The dollar weakened against most of its main competitors, with the Australian dollar and pound sterling soaring to new multi-year highs. The American currency fell, although the yield on US Treasuries resumed growth and ended the week at its highest level in a year.

The Federal Reserve released its semi-annual monetary policy report, which showed policymakers believe that the risks of impending bankruptcies in the country “remain significant.” Chief Jerome Powell is due to testify before Congress this week, for the first time during Biden’s administration.

Powell is due to testify before Congress on Tuesday, and his prepared remarks could be published as early as Monday. If he confirms the bank’s willingness to do more and opens the door to more bond purchases, yields could fall and the dollar may rally. While he is unlikely to go for new and imminent stimulus, Powell’s willingness to do more could provide the next upward leap for GBP/USD.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News