Pound Trades Higher On Vaccine Hopes
The pound traded higher against its major counterparts on
Tuesday, as investors reacted to the rapid rollout of COVID-19
vaccines and the possible easing of lockdown restrictions in
U.K. Prime Minister Boris Johnson said on Monday that his
government will be "very prudent" in relaxing restrictions as it
wants to ensure irreversible progress.
The PM plans to unveil his roadmap for gradually easing
restrictions on February 22.
Over the weekend, the U.K. reached a significant milestone of
offering first doses of Covid-19 vaccinations to 15 million people
Falling infection rates and the successful rollout of the
vaccination programme spurred hopes for a pick up in economic
The pound hit 1.2398 versus the franc, its highest level in a
year. At yesterday's close, the pair was worth 1.2370.
The pound moved up to more than a 1-year high of 147.31 versus
the yen and near a 3-year high of 1.3952 versus the dollar and held
steady thereafter. The pound had ended yesterday's trading at
146.46 versus the yen and 1.3901 versus the dollar.
After climbing to near a 1-year high of 0.8706 versus the euro
at 11:45 pm ET, the pound pulled back in a short while. The pair
was trading at 0.8722, near where it closed deals on Monday.
Looking ahead, German ZEW economic sentiment for February and
Eurozone GDP and employment data for the fourth quarter are set for
release in the European session.
New York Fed's empire manufacturing survey for February is due
out in the New York session.