GBP 

A swift economic recovery boosted by an end to all Covid restrictions is likely to keep the pound well supported for the next few weeks. 

Prime Minster Boris Johnson announced yesterday lockdown will all but end on July 19th. That means no masks, no limits on numbers and no social distancing. Johnson stated that despite rising cases, vaccines have broken the link between infections, hospitalisations and deaths. “If we can’t reopen society in the next few weeks, then we must ask ourselves when will we be able to return to normal,” he said. 

Businesses will be able to operate as normal, which should allow the economy to return to pre-Covid levels. Consumer confidence should be boosted too, which will hugely benefit business and supportive the pound even more.

Sterling’s attention now turns to Friday’s GDP data release. Significant improvement month-on-month could edge the currency higher.

Key announcements 

15:00 – USD – ISM services PMI – Forecast at 63.4 from previous 64