GBP : Latest
(Mon, 1 Mar 2021).
The UK Chancellor Rishi Sunak will present his Budget on Wednesday (12:30 GMT) saying that he will ‘level’ with the population over the enormous costs of countering the covid-19 pandemic. The Chancellor is expected to extend various payments, including the furlough scheme, until June in order to boost the economy ahead of the scheduled re-opening. According to media sources, Mr. Sunak will warn of future tax hikes, both personal and corporate, in an effort to start to cover some of the estimated pandemic cost of GBP300 billion.
The UK vaccination program continues at full speed with in excess of 20 million people vaccinated with at least one dose. The UK government’s next ambitious plan is to offer vaccinations to all over-50s by mid-April. In the last seven days, just over 2.5 million first doses were administered and just over 180,000 second doses.
Sterling is backing off again this week against the US dollar after printing the first negative weekly candle last week in nearly two months, despite making a fresh near-three-year high of 1.4242. The sell-off occurred as US Treasury bond yields jumped, boosting the greenback, as investors continued to worry about inflationary pressures further down the line. Cable is currently trading around 1.3935 and looks likely to re-test 1.3900 soon, although support off the 20-day simple moving average at 1.3930 and last week’s low at 1.3888 should stem any further sell-off.
GFS ASIA TEAM
- just now