LONDON: Corrugated sterling lower on Monday when British Prime Minister Boris Johnson is expected to confirm the plan to eliminate almost all covid-19 restrictions left in England from July 19, even though there are waves of cases to an invisible level for months.
Sterling fell 0.4% to $ 1.3856 against the dollar at 0853 GMT, after jumping to above $ 1.39 on Friday.
Versus the single currency, up 0.3% lower at 85.65 pence.
Johnson will announce the final decision to facilitate locking steps at a press conference on Monday.
He is expected to eliminate rules about contact masks and social contacts, and instructions for working from home.
Commerzbank analysts remember that Johnson’s move last year not to force locking was not sustainable.
“Then the locking is worn, getting tougher and maybe longer,” said Ulrich Leuchtmann, FX Research Head in Commerzbank.
“If it happens market optimism that the Bank of England might be brave elevator-off, i.e.
The increase in the first interest rate, might be rather destroyed,” he added.
The government believes that although the case has soared, death and hospitalization remained under control.
Sterling has become one of the best G10 currencies this year after the launch of English fast vaccination, which encourages hopes for rapid economic recovery.
More than 87% of adults have received at least one dose of Covid-19 vaccine in the UK and 66% have received two.
But investor confidence has been hit by a surge in Delta Covid-19 variant cases, which adds weaker economic data than expected in the UK.
Data showed last week that the economic rebound after England slowed sharply on May with gross domestic product which grew 0.8% from April, much weaker than the 1.5% median estimate in the Reuters economist poll.
“GBP Bulls find it difficult to find motivation this morning,” said Jane Foley, head of FX strategy in Rabobank.
Sterling makes it easy for PM set to lift Covid-19 limitations in the UK
