Forex Market: Sterling Reaches 6 Week High at $1.27

The British pound is once again peaking in the Forex market, after a drop in its positive performance at the beginning of July.

The British currency appears to be improving its performance, after some tense days of trading.

Investors were still unsure whether the UK would be able to recover after all the events that hit its economy.

British Currency Recovers

On Tuesday, the British Pound achieved a clear Bitcoin Code improvement in its Forex trading behavior. This is because investor sentiment improved thanks to the EU and a breakthrough in COVID-19 vaccine research

The United Kingdom has been one of the countries that has suffered the most from the Coronavirus. In addition, the economy of this country had been dragging heavy stones since Brexit was approved.

This caused the economic recession in the UK to deepen, affecting its performance in the Forex market. As a result, investors were not confident in the stability of the currency.

However, on Tuesday the situation improved for the British currency. After economic discussions on the part of the European Union bloc got underway at a good pace, and the first data from the trials of three possible COVID-19 vaccines gave promising results, the pound reached its highest level of the week.

Moreover, this improvement is clearly driven by market sentiment, which is optimistic.

It allows investors to overlook poor British economic data and the lack of concrete progress in the Brexit trade talks.

This clear good performance of European currencies in the Forex market promises to be sustained only if positive results are generated from the EU summit. For Monday saw a momentary withdrawal of the euro due to the strain of the eurozone’s economic agreements.

Euro Retracts after 4-Month High

Pound Recovers Despite Negative British Economic Data
The pound gets a maximum of 6 weeks. The currency had enjoyed its best day in three weeks on Monday, and on Tuesday it scored its high. A clear upward trend based on the tense stability environment in the Eurozone.

In addition, some analysts believe that the relatively optimistic assessment of the British economy by Bank of England Chief Economist Andy Haldane may also be supporting the Pound.

Meanwhile, data showed that British government lending reached a record high of 127.9 billion pounds ($162 billion) in the first three months of fiscal year 2020/21, more than double the previous year’s total. This is five times more than the previous year.

The British pound reaches a 6-week high on the Forex market, despite negative figures from the British economy.
Sterling reaches 6 week high on the Forex market, despite negative figures from the UK economy. Source: Reuters
Britain’s debt-to-GDP ratio is likely to exceed 100% soon, the UK’s Office of Budgetary Responsibility on Tuesday afternoon, and this will affect the pound’s performance.