Over the last few weeks we have seen Sterling exchange rates begin to fall predominantly against the Euro and Dollar as we have seen strength and progress in Europe and the USA’s vaccination programmes- the good news is it seems we will begin to see recovery across the board over the next 30-60 days- the bad news I am seeing is countries such as India have really taken a turn for the worst which could have an affect on a global scale- I am hoping that there is a global solution for some of the countries that have been hit harder over the last few months, unfortunately the reality is this pandemic is a worldwide situation, and until the fix is global, it does not mean anything gets “Normal”.

Looking back at Sterling- there really are no solid reasons for GBP to be lower at the moment, recent data releases have all been quite supportive for the UK with stronger PMI’s, rising inflation (Healthily) and good retail sales- we are also seeing better jobs numbers at the moment, which spells out the beginning of a recovery to me.

The Economic Calendar is relatively quiet this week as it is the last week of the month and I expect this to be quite supporting for Sterling- we are currently trading just under 1.15 against the Euro and I am expecting a lift from these levels- going into the next few months I cannot rule out another trip to 1.18 or above- as long as the UK stays on track with reopening plans I see no reason to short GBP at this point.

EURUSD exchange rates have gone back to the 1.20 level which has given some excellent buy opportunities- with recent strength in the Eurozone there is no reason why this exchange rate doesn’t continue to rise- of course, with a pandemic ongoing the levels we are targeting are unclear but 1.22 would be a good first target at this point, and then the rest depends on U.S Dollar performance, which has been strong lately.