After a strong start to the trading week Sterling continued its surge overnight and was able to open above the 1.40 handle on Tuesday. As the best performing G10 of the week analyst predict that the Cable could climb even further. This comes after GBPEUR rallied to a fresh high on Monday of 1.1642 but as struggled to maintain those gains since. Some economists believe that history proves April to be a bullish month for the British Pound. One analyst claimed that “April is usually a strong month for GBP. Due to the UK tax year’s end at the beginning of April, large corporations domiciled in the UK bolster demand for the UK Pound when repatriating overseas profits. This real money flow tends to provide a significant and tangible bid in GBP that sees the spot price outperform”.
On the vaccine front, The European Medicines Agency confirmed yesterday that there is a “possible link” between the Johnson & Johnson vaccine and blood clots. The EU drug’s regulator went on to stress that although blood clots should be listed as a “very rare” side effect “the benefits of the J&J COVID-19 vaccine outweighed the risks”.
GBPUSD opened Tuesday at 1.4003 and despite showing strong signs of advancement, finished the day at 1.3950.
GBPEUR also made a loss on Tuesday as the pair opened at 1.1610 but depreciated below the 1.16 handle, closing the day at 1.1578.
EURUSD still remains bullish, showing strong resilience on Tuesday to sustain itself in the 1.20 range. The pair opened at 1.2060 and closed the day just below that mark at 1.2049.