Chocolate-Fuelled Weekend Gives Sterling a Sugar Rush

A combination of supporting factors helped the GBPUSD pair regain positive traction on the first day of a new week and move back above the 1.3900 mark. As investors looked past Friday’s blockbuster US Non-Farm Payroll report, the upbeat market mood prompted some selling around the safe-haven US dollar. 

UK lockdown easing supports Pound sterling

The British pound was further supported by the highly successful vaccination distribution program in the UK and the gradual reopening of the economy. UK Prime Minister Boris Johnson announced the second phase of lockdown easing on Monday and confirmed that nonessential stores will reopen from 12th April.

GBPEUR climbed to one-year highs of 1.1770 last week as concerns grew about the economic fallout, as the third wave of COVID-19 infections in Europe undermined the shared currency. 

Upside trends seem somewhat limited as we still see a weaker Dollar across the economic calendar, preventing Sterling from pushing on too much.

RBA makes interest rate call

The Reserve Bank of Australia released data this morning which kept Aussie interest rates at 0.10%. There are no surprises there, but good news imminent as New Zealand Prime Minister Jacinda Adern said a Trans-Tasman bubble will become operational on Monday 19th April… This means people will be allowed to travel between New Zealand and Australia without quarantining.

No data of any significance is to be released this week relating to major economic moves, but Federal Reserve Chair, Jerome Powell is due to address the world with a hawkish stance on economic optimism, so towards the end of the week, the Greenback may lose ground against its major counterparts. We’ll also be keeping an eye on the Canadian Dollar, with Unemployment numbers expecting to fall on Friday at 1.30pm

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