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Drop In Covid Cases Boost Sterling Outlook

Drop In Covid Cases Boost Sterling Outlook

There was further caution ahead of Wednesday’s Federal Reserve policy decision as well as  reservations over month-end position adjustment. Tight ranges continued to prevail on Tuesday with markets also monitoring US and global coronavirus developments closely as the Euro traded fractionally below 1.1800 against the Dollar. 

The British Pound’s outlook is brightening on signs a third wave of Covid-19 infections in the UK is ending according to analysts. The UK on Monday reported a sizeable 38% drop in week-on-week Covid-19 cases, news that came alongside a rally in the Pound against all the G10 currencies.

 

Sterling advanced to highs of 1.3835 against the Dollar before correcting slightly while the Euro retreated to just below 1.1574. Further volatility could be heightened with markets monitoring potential month-end position adjustment.

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