GBP/USD: Sluggish around 1.4150 as Brexit, reflation woes battle UK unlock optimism
GBP/USD drops for the second consecutive day, around an intraday low of 1.4137, amid Monday’s Asian session. In doing so, the cable pair struggles to justify tapering fears and upbeat sentiment over the UK’s easing of virus-led activity restrictions, not to forget Brexit woes.
The Sun spots Dr. Jenny Harries, head of National Health Service (NHS) Test and Trace, as well as UK Health Minister Matt Hancock to say, “England’s lockdown could end on June 21, say experts after tests proved British vaccines are effective against the Indian Covid variant.”
GBP/USD Forecast: Confidence on reopenings to maintain the pound afloat
The GBP/USD pair has advanced for a third consecutive week, ending it in the 1.4140 price zone. The pair eased on Friday from a weekly high of 1.4233, the level reached after the UK reported much better than anticipated April Retail Sales. According to the official report, sales were up 9.2% MoM and 42.4% YoY. Additionally, Markit reported the preliminary estimates of its May PMIs. The UK’s manufacturing index resulted at 66.1, while the Services PMI printed at 61.8, both improving from April’s figures.
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