Sterling breaks above 1.40 on vaccine optimism

Sterling breaks above 1.40 on vaccine optimism

GBP/USD soared to levels not seen since April 2018 holding within the 1.40 handle as investors are optimistic that the rapid roll-out of Covid vaccinations will support a reopening of the economy. The US dollar continues to weaken against its peers trading down 0.3% for the day.

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  • FX Rates
    February 19, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.

  • USD
    The dollar index is trading lower for the second day ahead of US President Joe Biden’s speech at the G7 conference. Biden is expected to outline the nation’s new foreign policy.
    Sterling broke through the psychological 1.40 level for the first time since 2018. This move higher comes as investors are optimistic that the vaccine rollout will support a recovery in the economy this year.
    EUR/USD is trading higher following data out of Germany that signaled manufacturing PMI beat estimates.
    USD/CAD is down 0.6% hitting a low of 1.2605 and on track for a weekly drop close to 1%. The Canadian dollar is largely supported by stronger risk appetite and higher oil prices.
    The Australian dollar surged against all of its G10 peers following comments from Westpac Banking Corp Economist increased his forecast for the country’s 10-year bond yield. USD/JPY is hovering around the psychological level of 105.50.
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Cate Camerota

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