24/05/2021

Market report: pound holds strong against dollar


GBP

Strong economic data and growing confidence that all restrictions could be lifted by June 21st sees the pound continuing to perform well against most major currencies. Nowhere is this clearer than against the dollar, where the pair reached an almost three year high on Friday. 

Friday’s retail sales data came in well above expectations at 9.2% after non essential shops reopened last month. PMI data was also positive, hitting its highest level since the index began and rising to 62 from 60.7 in April. 

The only current threats to sterling are how the Bank of England deals with inflationary pressure and the Indian variant. Public Health England released a report over the weekend confirming both major vaccines used in the UK are effective against the variant. The news was welcomed by Secretary of State for Health, Matt Hancock, who described the data as “ground-breaking”, stating he’s “increasingly confident” England is on track for a June 21st reopening. 

Key announcements 

3:30 – GBP – Bank of England Governor Andrew Bailey speaks 


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