U.K. Reopening in the spotlight
GB100, the U.K.'s commodity-heavy FTSE, gained 0.25% so far today, despite the pound jump, as PM Boris Johnson set to announce the new rounds of reopening from the COVID-19 lockdowns.
Cable touched its 2-months high above 1.4020 key level, and now it looks at 1.4230.
The pound got boosted for several reasons. Firstly After the local election in Scotland. While the Scottish National Party (SNP) won the election with a minor majority, it seems no need for another independence referendum in Scotland. SNP sweeping victory giving more stability to the Sterling.
After this political support, GBP got help from Mr. Johnson. He is set to deliver a new announcement about new rounds of Britain's reopening. More than half of the population received at least one jab, and more than 25% have been fully vaccinated.
Economic Data ahead including GDP number later this week due to release and it is expected to confirm sharp increase, despite 1.7% estimated contraction. Also, BOE Bailey's speech in the week ahead must help the market bulls, as BoE is very optimistic about economic recovery and revised its developing estimate to a 7.25% increase for 2021, which will be the fasted annual growth since 1941.
And finally, the USD Index chart shows something like a dead cat bounce, which with disappointed job data of last Friday, it is expected to fall more, as investors guessing that we need more time than the market predicted to recover from the COVID-19 pandemic fully. However, a week ahead with significant speeches must be closely watched.
Technically, Cable is in a clear uptrend, and as long as it is trading above 1.3954 (P.P.), 1.4230 is the next target to be reached.
