GBP/USD Bullish Despite BoJo’s Media Coverage
Aiswarya Gopan • 1 min read
GBP/USD is trading bullish on Monday, making the most of the weakness in the US dollar even as rising investor confidence on UK’s economic recovery strengthens the Sterling against its major peers. At the time of writing, GBP/USD is trading at around 1.39.
The Sterling has been on the rise against the Euro and the US dollar over increasing signs that the UK is set to post a sharp rebound following the reopening of its economy recently. The optimism has been driven by the rapid rollout of the COVID-19 vaccine across the nation, with recent reports suggesting that over half its population has been inoculated already.
GBP/USD has also been on the rise as the US dollar weakens ahead of the upcoming FOMC meeting. Despite the US economy also making strides in recovering from the coronavirus crisis, the currency has been bearish due to Fed officials’ comments indicating their unwillingness in changing their dovish outlook towards the monetary policy anytime soon.
After posting its second consecutive week of gains, GBP/USD might experience some pressure from recent political developments surrounding PM Boris Johnson. Johnson has come under fire in the British media over his handling of the initial COVID-19 outbreak across the UK and about his apartment refurbishing, which the media alleges was done using party funds.