Daily Currency Update

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Market Optimism Continues to Drive Sterling Higher

GBP - British Pound

Sterling continued to rally yesterday, after Boris Johnson announced the UK would lead a cautious but irreversible path out of the most recent Covid-19 lockdown measures. This was after it was announced we had hit the vaccination target of 15 million. This means that in just over two months the UK has vaccinated nearly 25% of its population. The next press conference from Prime Minister Boris Johnson is on Monday 22nd, where he is expected to re-open schools from March 8th and layout a clear plan for the UK’s exit from lockdown.

Sterling benefited from weakness in the USD, breaking the $1.39 handle and tempting to test the psychological resistance level of $1.40. Sterling gained 0.5% against the Dollar yesterday and 0.35% against the Euro.

Key Movers

The US Dollar was held near its two-week lows yesterday after the continued optimism of the global vaccine rollout, combined with improved risk appetite from investors due to the potential $1.9 trillion US stimulus package, caused a move to riskier currencies.

EURUSD was very quiet during London trading yesterday hovering above the $1.21 handle for the majority of the day. The Euro was unable to take advantage of any Dollar weakness due to concerns of their vaccine rollout and what effect it may have on the reopening of most European economies.

Expected Ranges

GBP/USD: 1.3890 - 1.3990 ▲

GBP/EUR: 1.1405 - 1.1490 ▲

GBP/AUD: 1.7820 - 1.7920 ▲

EUR/USD: 1.2105 - 1.2185 ▲