The pound sterling made some headway against a weaker greenback while simultaneously losing ground against the strengthening euro. Markets are waiting to hear what the incoming US Secretary of the Treasury will have to say later today; Janet Yellen had served as the president of the Federal Reserve Bank for four years under the Obama administration. Analysts say that she is likely to discuss the incoming administration's need of a major fiscal stimulus package in order to shore up the flagging US economy; she is also likely to commit the US to exchange rates determined by market forces as opposed to central bank intervention. Both, analysts say, is likely to keep the US dollar under pressure for the remainder of the year.
In London trading, the GBP/USD was trading at $1.3615, a gain of 0.2267%; the pair has ranged from a trough of $1.35702 to a peak of $1.36275. The EUR/GBP was trading higher at 0.8908 pence, a gain of 0.2363% and off the session low of 0.88830 pence, while the high was recorded at 0.89155 pence.
Sterling Outlook Improving
Analysts expect that the pound will continue to gain strength and favor among Forex market players as the government's efforts towards nationwide vaccinations intensify. Britain claimed the 5th spot in the number of deaths for the country, but the government is hoping to put that behind them with an all-out attempt to slow the spread through vaccination. Once the majority of the populace has gotten immunized, the economy can have a chance at recovery. Later today, the Chief Economist of the Bank of England will be offering his thoughts on the recovery, and the future of the pound, especially now that the consideration for negative rates has been pushed back.