Pound Higher Amid Easing Of Lockdown Restrictions In England

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The pound strengthened against its major counterparts in the European session on Monday, amid optimism over the U.K.’s vaccine rollout and the easing of a stringent lockdown, with children returning to school for the first time since January.

The first step in the easing of lockdown restrictions in England begin today as part of the government’s ‘roadmap’ to reopen the economy.

Schoolchildren are returning to classrooms for the first time in at least two months amid a drop in cases.

Care home residents will also be allowed one regular visitor and outdoor recreation between two people will be permitted.

A measure of U.K. business confidence hit a 12-month high, adding to optimism over economic recovery.

The pound recovered to 150.34 against the yen, from a low of 149.61 seen at 5:00 pm ET. On the upside, 153.00 is possibly seen as its next resistance level.

Preliminary data from the Cabinet Office showed that Japan’s leading index increased to the highest level in two-and-a-half years in January.

The leading index, which measures the future economic activity, grew to 99.1 in January from 97.7 in December.

The pound climbed to a 4-day high of 1.2936 against the franc, reversing from a low of 1.2823 hit at 5:00 pm ET. The pound is seen finding resistance around the 1.31 mark.

The pound was higher at 0.8569 versus the euro, its strongest level since February 24. The next possible resistance for the pound is seen around the 0.84 mark.

Data from Destatis showed that German industrial production decreased unexpectedly in January.

Industrial production fell 2.5 percent month-on-month in January, confounding expectations for an increase of 0.2 percent. Production had advanced 1.9 percent in December.

The pound was modestly higher against the greenback, with the pair trading at 1.3852. This may be compared to a low of 1.3800 set at 2:15 am ET. The pound is likely to challenge resistance around the 1.41 level.

Looking ahead, U.S. wholesale inventories for January will be published in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com

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