Pound Appreciates On Recovery Hopes
February 02 2021 - 1:35AM
RTTF2
The pound firmed against its major counterparts in European
deals on Tuesday, as a faster pace of the U.K. vaccine rollout
spurred hopes of a quick recovery.
The upbeat market mood and receding speculation over negative
rates in the near term also underpinned the currency.
Stimulus worries eased after U.S. Senator Susan Collins said a
group of Republican U.S. senators held productive discussions with
Democratic President Joe Biden about Covid-19 relief.
There were areas of agreement in the White House meeting, while
"the president also reiterated his view that Congress must respond
boldly and urgently," White House Press Secretary Jen Psaki
said.
Market participants focus on the Bank of England's monetary
policy decision on Thursday, when it will also publish its findings
on negative interest rates.
Data from the Nationwide Building Society showed that U.K. house
prices growth slowed in January for the first time in six
months.
House prices climbed 6.4 percent on a yearly basis, but weaker
than the 7.3 percent increase logged in December. Economists had
forecast an annual growth of 6.9 percent.
The pound spiked up to 0.8795 against the euro, its highest
since May 2020. On the upside, 0.86 is possibly seen as its next
resistance level.
The pound bounced off from a 4-day low of 143.26 against the
yen, with the pair trading at 143.77. The pound may test resistance
around the 145.00 level.
The pound edged up to 1.2283 against the franc from Monday's
close of 1.2249. If the pound rises further, 1.24 is possibly seen
as its next resistance level.
In contrast, the pound gave up some of its early gains against
the greenback and was trading at 1.3677. The pound is poised to
target support around the 1.34 level.
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