We have seen limited volatility for Sterling exchange rates at the start of the trading week, with the pound making little headway against any of the major currencies.
Last week was quite different, with the pound ending up being the best performing of all of the G10 currencies, hitting the highest level we have seen against the Euro for a number of months and also hitting an 18 month high against the Dollar.
One of the key focal points for investors at present is pace and efficiency of the covid-19 vaccine being rolled out around the world.
The UK has now officially vaccinated more people than have tested positive for the virus, with the figure now closing in on 4 million people to have been vaccinated already, compared to a very minimal figure in France and many other areas around Europe to date. There are fears that France could have problems with the vaccine rollout, latest figures showed that 77% of the UK would be prepared to take the vaccine compared to just a mere 40% in France, and the French Government have suggested that they could be in for a marathon not a sprint in the coming months.
In recent weeks that the pound has performed well you often see a sell off and some profit taking, leading to the pound giving back a bit of strength, but experts such as Petr Krpata, Chief EMEA strategist for interest rates and FX at ING have suggested that the pound may have further to rise, and that the positive approach and rollout of the vaccination could continue to offer short term support.
It was reported yesterday from the Chief Exec of the NHS that 140 jabs per minute are being administered in the U.K at present, so there are many reasons for investors to start to gather interest in the U.K and the pound, especially now that the risk of a no deal Brexit has been removed.
Inflation on Wednesday, consumer confidence and retail sales figures on Friday will also be important for the performance of the pound this week, not to mention the inauguration of President Biden in the States on Wednesday having the potential to cause market volatility for all major currencies should trouble occur.
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