IFX Market Report: Tuesday 18th May 2021

The Pound made an impressive start on Monday as the UK ‘re-opening’ progressed, with individuals now allowed inside pubs and restaurants from yesterday, along with indoor socializing and a limited range of foreign travel. The UK has now administered 56M COVID-19 jabs and the latest data “shows nearly 70% of the adult population have had at least one jab, while just over 38% have had two jabs… this speedy roll-out has enabled the UK government to stick to its re-opening plans, despite worries over a new Indian mutation. The government has said that while this new variant could cause the ongoing re-opening to stall, the current vaccination program works against the new Indian variant, although they remain cautious.” It should be noted that if this new variant does become a serious issue, or the re-opening schedule stalled, the Pound will almost certainly weaken.

While GBPEUR only made subtle gains in the session, GBPUSD was able to close above the 1.41 handle yesterday, capitalizing on a weak US Dollar. Going into the session it was clear that Friday’s disappointing US Retail Sales figures were still weighing heavy on the Dollar. It should also be noted that “the ongoing decline in the US Treasury bond yields, further acted as a” hinderance to the Greenback, enabling Cable to make further upside gains.

GBPUSD started Monday at 1.4084 and quickly advanced past the 1.41 handle reaching fresh highs. Cable finally finished the day at 1.4118 and extremely remains bullish.

GBPEUR also made a positive start to Monday, opening at 1.1614 and closing at 1.1624.

EURUSD also made subtle gains on Monday – making the most of weaker US Dollar. The pair opened the session at 1.2126 and closed at 1.2145.

Older posts
Newer posts