As the dollar stays weak, the GBP/USD has been extending its gains. Sterling has three reasons to recover, according to FXStreet Analyst Yohay Elam.
“Over 24,000 instances of COVID-19 were reported in the United Kingdom, the majority of which were the highly contagious Delta variety. However, because hospitalizations have only slightly increased and mortality have remained low, Prime Minister Boris Johnson plans to keep the July 19 reopening date. Will he, like so many others before him, alter his mind? In the next two weeks, anything might happen, but optimism is boosting the pound on Monday.”
“In June, the Markit Services Purchasing Managers’ Index was improved from 61.7 to 62.4 points, indicating strong expansion. A positive prognosis for the UK’s largest industry is good news for the pound.”
“The European Union and the United Kingdom, as well as the decision to postpone a dispute on sausage trade between the United Kingdom and Northern Ireland until September. The pound will most certainly be haunted by the remaining troubles from the divorce for a long time, but not throughout the summer.”/n
