GBP - British pound
Sterling rose yesterday on the back of a lift in the mood of investors following yesterday vaccine announcement. GBPUSD picked up to the mid 1.32 handle on the news, with GBPEUR breaking 1.11. However, the market did retrace slightly towards the back end of the European session with GBPUSD finishing off the day around the mid 1.31 handle and GBPEUR back below 1.11. This morning the market has continued to push higher with the positive mood in financial markets.
Bank of England Governor Bailey spoke yesterday, mainly stating that The Bank of England was right to ignore climate change risks in its emergency response to the initial impact of COVID-19 on the economy, and instead seek to tackle them through longer-term regulatory changes.
The UK’s unemployment rate continued to push higher, this morning the rate rose to 4.8% between July to September. Redundancies rose by 181,000 for the period, which is a record high. This was mainly due to companies expecting the furlough scheme to end at the end of October, however it has now been extended to March.
The big news yesterday was the announcement for Pfizer that the vaccine was ready and 90% successful against Covid-19. This caused a massive rush of optimism across all financial markets. Pfizer's own shares leapt 14%, but stocks in airlines and hotels also jumped.
The US dollar sold off on the back of the news and investors moved away from the ‘safe haven’ of the dollar and into riskier assets. Trump eventually reacted stating coronavirus vaccine trials which have been found to be 90% effective as "great news", however, still refusing to concede to Joe Biden over the election.
1.2985 - 1.3250 ▲GBP/EUR:
1.1105 - 1.1210 ▲GBP/AUD:
1.8075 - 1.8205 ▲EUR/USD:
1.1795 - 1.1905 ▲