GBPUSD intends to keep its positive momentum as the asset continues updating the highs.
On Tuesday afternoon, the British Pound continues strengthening against the USD and may update its highs again. The current quote for the instrument is 1.3774.
The general speculative attitude in the Pound is obviously improving due to both increased appetite for risky assets on global capital markets and expectations за efficient results of the vaccination procedure. In addition to that, the British currency is supported by fewer concerns relating to the implementation of negative interest rates in the country.
Earlier, the Bank of England said that it wasn’t considering negative interest rates and the key or most probable scenario. The country’s banking system will require at least 6 months to adapt to negative rates and the regulator is highly unlikely to take such a risk.
Market players are expecting the British economy to quickly recover as early as the second quarter of 2021 and that’s pushing the Pound upwards. In other words, market players are very optimistic about the future and that inspires bulls.
The statistics published earlier showed that the BRC Retail Sales added 7.1% y/y in January after expanding by 4.8% y/y in December and against the expected reading of 5.4% y/y. This is very good and confident data, especially given that the BRC always offers the latest and most accurate information.