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tmsnrt.rs/2egbfVh* Graphic: World FX Rates in 2020 by 3 Min Read* Since the Brexit referendum, the sterling has been trade-weighted. tmsnrt.rs/2hwV9Hv Reuters, LONDON, July 6 – On Tuesday, sterling touched a 12-day high versus the euro and a week-high against the dollar, with experts citing recent dollar consolidation and Britain’s July 19 reopening plans as factors for the currency’s strength. In early London trading, sterling hit $1.3798 against the dollar, its highest level since June 28. At 85.50 pence against the euro, it reached its best level since June 24. On Monday, British Prime Minister Boris Johnson announced plans to lift social and economic limitations on COVID-19 in England in two weeks, a test of whether a quick vaccination introduction provides adequate protection against the highly contagious Delta form. Johnson stated that the administration planned to eliminate the restrictions on July 19, with a final decision expected next week. He said that the move will end statutory restrictions on social interaction, the requirement to work from home, and the requirement to wear face masks. “GBP is outperforming other currencies. It’s possible that this is connected to Prime Minister Boris Johnson’s statement last night on fully reopening the economy and learning to live with Covid-19 “In a note, ING strategists stated. “However, this link appears to be quite tenuous, and even the Bank of England admits that the final stage of the economy’s reopening will have little impact on economic activity.” Because of Britain’s swift vaccination rollout, which analysts say has resulted in a faster reopening of its economy, sterling has been among the top performing G10 currencies this year. However, those advantages have faded in recent weeks as other countries catch up and the Federal Reserve hinted at an earlier than expected end to easy monetary policy, boosting the dollar. The Bank of England, whose governor Andrew Bailey warned against an overreaction to inflation in Britain, is another cause for the pound’s recent decline. “At this point, we believe sterling lacks the momentum to break through a crucial support level in euro-sterling around 85.30 pence, or to surge above resistance in cable at $1.3930-40,” according to ING. Ritvik Carvalho contributed reporting, while Angus MacSwan edited the piece./nRead More

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