As risk appetite soared Sterling was the most benefited from the market's sentiment, recovering from an intraday low of 1.3715 on Friday to hit a weekly high of 1.3842, closing it a handful of pips below the level. The impressive U-turn had no catalyst but speculative interest moving away from the greenback and jumping into high-yielding assets. The fact that the pair settled above the 1.3800 threshold opens the door for more upside this coming week. Meanwhile, the COVID-19 vaccine rollout continues in the United Kingdom, with the number of new daily contagions averaging 2,000 in the past week. The number of new deaths, however, has decreased sharply, down to 34 per day, according to the latest reports. The path to 'normality' continues in the UK, providing it with an economic advantage. Sterling's strong 2021 performance has faded against most of its peers this April, but this underperformance is not as obvious against the Dollar which has also fallen across the board. A number of analysts suggest the Pound and the Dollar both benefited from a rapid vaccine rollout in the first three months of the year, which offers the prospect of a sustained unlocking of their economies. However, it now appears this vaccination advantage has run its course and is in the price of the two currencies.
GBPUSD started subtly on Friday trading at 1.3764 but quickly advanced due to an increase in positive market sentiment, finishing the day at 1.3813.
GBPEUR was also able to make minor gains on Friday. Opening 1.1500 and closing at 1.1635
EURUSD continued to gain upside on Friday. The pair started at 1.1916 and surged all the way to 1.979 at the close.