Sterling breaks above 1.40 on vaccine optimism

Cate Camerota

February 19, 2021

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.

EUR/USD

1.2122

GBP/USD

1.4011

USD/CAD

1.2625

AUD/USD

0.7855

USD/JPY

105.52

USD/CNH

6.4537

USD/ILS

3.2737

USD/MXN

20.3862

USD/CHF

0.8954

USD/INR

72.6512

USD/BRL

5.4014

USD/SGD

1.3244

USD/DKK

6.1362

USD/SEK

8.2809

USD/NOK

8.4489

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.
GBP
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
EUR/USD is trading higher following data out of Germany that signaled manufacturing PMI beat estimates.
CAD
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.
ASIA/PACIFIC
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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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Cate Camerota

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