Forex traders expect that Britain's economy will recover more quickly than its peers given the aggressive efforts by the UK government to rein in the coronavirus threat with a fast-paced immunization plan.
The GBP/USD surged above the $1.42 level and is within striking distance of $1.43 as economists hold on to a bullish view for the pound. This year, among the G10 currencies, the pound has been the top performer; is has been up about 3.2% versus the euro and nearly 4% versus the greenback. Analysts say that markets and Forex traders expect that Britain's economy will recover more quickly than its peers given the aggressive efforts by the UK government to rein in the coronavirus threat with a fast-paced immunization plan.
In London trading as of 11:23 am, the GBP/USD was trading at $1.4134, a gain of 0.1765% but moving off the session peak of $1.42456; the low was recorded at $1.41007. The EUR/GBP was lower at 0.8601 pence, a loss of 0.0801%; the pair has ranged from 0.85369 pence to 0.86192 pence in today's session. The GBP/JPY was higher at 149.618 yen, up 0.7481%, off the session high of 150.185 yen.
Markets to Focus on Key Central Banks
Later today, market players will be tuned to the Monetary Policy Report hearings of the Bank of England. That will offer traders and investors a clearer outlook for the currency as regards possible changes to the existing ultra dovish policy. Later in the trading day, the Federal Reserve's Jerome Powell will also be speaking. The Fed chief will be addressing the US Senate as he offers up the Fed's report on monetary policy; later, he will testify before the House of Representatives. Analysts say that Mr. Powell is likely to address the current interest rate environment and the outlook for inflation given the current Fed policy.