GBP / USD: UK regional and local elections limit recovery

GBP / USD: UK regional and local elections limit recovery

According to economists at Westpac, the weakening of the immunization and political tensions at GBP / USD, but range support at 1.3670-00 has gained, increasing the scope for rebound.

GBP pullback makes sense

“GBP’s recent weakness, particularly against the EUR, coincided with a decline in vaccination since Easter. This is partly due to a low supply of vaccines from India while alternatives are not yet approved. However, the rollout has not been in line with previous targets. And remains as against. Weekly vaccinations are still about 3 million per week. ”

“Regional problems have also surfaced in recent weeks. Unrest in Northern Ireland in the post-Brexit deal may soon be resolved with renewed EU-UK negotiations in advance. Concerns may rise as to whether a strong SNP The result could create another “one-off” “independence referendum. Disruptions at the national level, not only Scottish, economies determine current prospects for recovery and reduce GBP. ”

“As GBP collapsed, GBP / USD reached solid support around the 1.3670-00 area. However, recovery should be limited until the elections are clear by 6 May.”

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