Pound Rises As U.K. PM To Unveil Roadmap To Ease Lockdown
The pound advanced against its major counterparts in the
European session on Monday, as investors await a roadmap out of
lockdown set to be announced by Prime Minister Boris Johnson in a
speech to Parliament later today.
The UK PM's office announced that the four conditions to ease
restrictions are met, enabling the government to proceed with the
first stage of reopening the economy from March 8.
All schools in England will reopen on March 8, with outdoor
after-school sports and activities allowed.
Outdoor recreation between two people will also be permitted
from the same date.
From March 9, outdoor gatherings of up to a maximum of six
people or two households will be allowed.
Tennis courts, golf courses and other outdoor sport facilities
are expected to be allowed from the same date.
The pound was up against the franc, at a 1-year high of 1.2630.
Immediate resistance for the pound is seen around the 1.28
The pound appreciated to 148.29 against the yen, its biggest
level since March 2019. Next key resistance for the pound is seen
around the 150.00 level.
Data from the Bank of Japan showed that Japan's services
producer prices declined for the fourth straight month in
The services producer price index fell 0.5 percent year-on-year
in January, following a 0.3 percent decline in December. This was
the fourth consecutive month of decline.
After falling to 0.8661 at 2:15 am ET, the pound spiked higher
to near a 1-year high of 0.8636 against the euro. Should the pound
rises further, 0.85 is likely seen as its next resistance
Survey results from ifo Institute showed that German business
confidence strengthened in February.
The business confidence index rose to 92.4 from 90.3 in the
previous month. This was better than the economists' forecast of
The pound rose back to 1.4044 versus the dollar, on track to
pierce its Asian session's nearly a 3-year high of 1.4053. The
pound is seen finding resistance around the 1.42 level.