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Sterling Buoyed, Positive Vaccine Signals Eyed


GBP has picked up a bid and outperforms all of its G10 peers as we type, with some linking the move to encouraging signals surrounding the UK's Covid-19 vaccination campaign. Per BBG, "the UK is set to confirm that residents at every eligible care home in England have been offered a Covid-19 vaccine," in what PM Johnson has hailed as a "crucial milestone," following weekend comments from Trade Sec Truss, who said that there are no disruptions to the supply of jabs.

  • Cable trades +28 pips at $1.3736. Bulls look to take out Jan 27 high of $1.3759 before targeting May 1, 2018 peak at $1.3773. On the downside, focus falls on Jan 26 low of $1.3610, located ahead of Jan 18 low of $1.3520, a key near-term support.
  • EUR/GBP has shed 24 pips and trades at GBP0.8831 at typing. Bears eye Jan 27 low of GBP0.8813 for initial support and a break here would expose May 13, 2020 low of GBP0.8808. Bulls need a clearance of Jan 18 high of GBP0.8925 before targeting Jan 12 high of GBP0.8996.
  • GBP/JPY has added 28 pips and last deals at Y143.80. A rally above Jan 29 high/round figure of Y143.96/144.00 would expose Feb 21, 2020 high/another round figure of Y144.96/145.00. Conversely, a retreat under Jan 26 low of Y141.29 would expose the 50-DMA/Jan 18 low of Y140.45/140.36.

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