The pound sterling continues to best its main rivals, with the government's efforts of a thus-far successful vaccine roll-out at the core of market sentiment. Both the US dollar and the euro were lower against the pound, and expectations are that sterling will continue to be a favorite among Forex traders, so long as Boris Johnson continues to push an agenda that will reduce the numbers of infected and help the UK economy recover at a swifter pace. In point of fact, against the euro, the pound has gained more than 2% on expectations of a quick turnaround of the economy. Currency strategists are looking at sterling in a “post-COVID world” and have determined that the resiliency of the currency has placed it in high standing among the G10 currencies.
In London trading as of 11:07 am, the EUR/GBP was trading at 0.8664 pence, a loss of 0.2854%, off the session trough of 0.86609 pence, while the session high was set at 0.87010 pence. The GBP/USD was higher at $1.3932, a gain of 0.5384%; the pair has ranged in this session from a low of $1.38389 to $1.39352.
Markets Focus on US Labor News
Turning to the US, markets will look at the data to be released later today. Besides building permits and housing starts, the most notable of data will be the release of unemployment claims figures. Analysts are predicting that continuing jobless benefit claims will decline in the period ended February 5th, to 4.413 million from 4.545 million. Initial claims for the period ended February 12th is also like to fall, to 765,000 according to estimates, from 793,000. The Biden administration is working to hasten the pace of the vaccine distribution in order to help get workers back to their jobs.