Pound Climbs As Lockdown Measures Ease Further In England


The pound moved higher against its major trading partners in the European session on Monday, as the lockdown measures were eased further in England, with non-essential stores and pub gardens reopening after months of restrictions.

Indoor gyms, swimming pools, libraries and zoos will be allowed to reopen. Hair and beauty saloons will resume operations from today.

Indoor drinking and dining will be permitted from May 17, when rules are loosened further.

The Prime Minister said the easing marked “a major step forward in our roadmap to freedom”.

Investors await quarterly results as earnings season got underway. Goldman Sachs, JPMorgan and Wells Fargo are scheduled to report their results on Wednesday.

The pound rose to 1.2722 against the franc, from a low of 1.2658 hit at 5:00 pm ET. The pound is likely to find resistance around the 1.30 level.

After falling to 149.76 at 1:00 am ET, the pound advanced to 150.59 against the yen. On the upside, 152.00 is likely seen as its next resistance level

Data from the Bank of Japan showed that Japan producer prices rose 1.0 percent on year in March – exceeding expectations for 0.5 percent following the upwardly revised 0.6 percent contraction in February.

On a monthly basis, producer prices jumped 0.8 percent – again exceeding expectations for 0.4 percent and up from 0.6 percent in the previous month.

The pound touched a 4-day high of 1.3768 against the greenback, rising from a low of 1.3669 seen at 1:00 am ET. The pound is seen finding resistance around the 1.41 level.

After a fall to 0.8695 at 1:00 am ET, the pound rose to a 4-day high of 0.8640 against the euro. Immediate resistance for the currency is seen around the 0.84 level.

Data from Eurostat showed that Eurozone retail sales increased more than expected in February after declining at the start of the year.

Sales grew 3.0 percent from January, when they fell 5.2 percent, revised from 5.9 percent. Economists had expected 1.5 percent increase.

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


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