Sterling rises on calls for lifting of COVID restrictions.
GBPUSD under the bullish pressure today after Britain’s new health minister, Sajid Javid, said he wants all COVID-19 restrictions lifted as soon as possible. As a former finance minister Javid will be more sensitive to the costs suffered by the economy of lockdowns and therefore more likely to insist on lifting the restrictions – which would be positive for the sterling. Investors this week will also be watching a dispute between Britain and the European Union over post-Brexit trade in Northern Ireland. Daily positive cases have been rising for a month in Britain but accelerated vaccination programme have weakened the link between infections and deaths, with daily fatalities remaining about 20 or lower – making the sterling the relative winner in the eyes of the markets.
Expect buyers on downward corrections.
Next resistance to watch – 1.3990
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