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Sterling recovers from recent slump

Friday 26 March, 2021

Daily Currency Update

More than 50% of the UK adult population have received their first jab and this could pay dividends for the economy. This morning UK retail sales data released at 2.1%, slightly down on the expected 2.2%, but much better than last month’s -8.2%. The recent gain for the pound marks a turnaround from the last few days, where it has experienced weakness, and suggests that the trend of appreciation might be ready to continue.

Key Movers

The US is beginning to show the benefits of a smooth vaccine rollout. 70% of Americans 65 or older have received at least one COVID-19 vaccine dose, with more than a third of the overall adult population receiving their first jab. The impressive pace of vaccination and the prospect of a large stimulus package has been fuelling expectations for a faster US economic recovery. US President Joe Biden pledged on Thursday to double the US vaccination rollout plan after reaching the previously set goal of 100 million shots 42 days ahead of schedule. Thursday’s weekly jobless claims data, which fell to a one-year low of 684,000 from the 781,000 claims filed during the previous week, is another indication of the strength of the US recovery, which could lead to further dollar gains.

Expected Ranges

  • GBP/USD: 1.3765 - 1.3795 ▲
  • GBP/EUR: 1.1670 - 1.1705 ▲
  • EUR/USD: 1.1765 - 1.1795 ▼
  • GBP/AUD: 1.8055 - 1.8115 ▲