Sterling Supported by Government Moves

Barbara Zigah

Upbeat PMIs fail to lift the euro.

EnglandThe pound sterling continues to be supported by the British government's efforts regarding widespread vaccination against the coronavirus. Analysts say that the market's optimistic outlook for the UK economy has continued to improve after it was reported that the numbers of infected has fallen by 21.2% this past week compared to the previous one, with the number of deaths 33.5% lower in the same time period. More than 20 million Britons have now at least received their first dose of the vaccine, and the government has recently announced additional funding to support the ongoing program. The finance minister is also expected to announce additional support for those industries that have been negatively impacted by the quarantines and lockdowns.

In London trading as of 11:19 am, the GBP/USD was trading at $1.3973, a gain of 0.2885% and sliding from the session high of $1.40001, while the low was recorded at $1.38983. The EUR/GBP was lower at 0.8623 pence, a loss of 0.4836%: the pair has ranged from a trough of 0.86195 pence to a high of 0.86962 pence. The GBP/JPY was higher at 149.094 yen, up 0.5246%, well off the session peak of 149.313 yen.

Upbeat PMIs Fail to Lift Euro

Earlier today, Manufacturing PMI reports were released for several economies across the Eurozone, including the UK. The Markit Manufacturing PMI for the UK for February came in with a reading of 55.1, above the 54.9 flat reading that had been expected. Germany and France also had upbeat PMI reports, with readings of 60.7 and 56.1, against forecasts of 60.6 and 55.0, respectively. Italy's PMI failed to meet analysts' predictions with a reading of 56.9 against an expected 60.0, but Spain's PMI moved into expansion territory with a reading of 52.9, better than the 52.0 expected and above the 49.3 from the previous reading. Despite the generally upbeat PMIs, the EUR/USD traded lower at $1.2048, down 0.2005%.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

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