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June 1, 2021

Terrible! Pound Breaks 3 Year Record

 The pound sterling surged higher at the start of trading in early June, which saw the currency break its latest three -year high against the US dollar.


Sterling traded stronger around 1.24460, the highest price level since April 2018, following a 0.2% gain recorded in the Asian session today.


Among the factors driving the pound’s movement was growing market confidence that the government would proceed with their plans to fully lift the Covid-19 embargo on June 21st.


The move will spur further economic activity and spur positive sentiment to support demand for UK assets, including the pound.



In addition, the weakness of the greenback dollar also helped drive the strengthening of prices for the currency.


The US dollar continued to weaken amid expectations the Federal Reserve (Fed) will continue to maintain a very loose current monetary policy despite rising inflationary pressures.


Against most major currencies, the dollar index traded gloomily around a nearly four -month low of 89.74.


Meanwhile, the euro traded slightly higher after getting positive news from German Chancellor Angela Merkel at the start of the Asian session.


Bloomberg reported Chancellor Merkel gave an indication that the mandatory sanctions imposed in areas severely affected by Covid-19, are likely to be lifted earlier than the date it was supposed to end in late June.