There are no guarantees surrounding the coronavirus pandemic, but the vaccination programme should lead to strong UK and U.S. growth over the next few months.
The UK economy contracted for the first quarter of 2021 as the economy was undermined by further lockdown measures. There was, however, a limited recovery late in the quarter with a strong reading for March retail sales. The U.S. economy will, however, also strengthen strongly over the next few months, which will tend to provide underlying dollar support, especially if long-term yields increase. The combination of low U.S. interest rates and strong global equity markets will continue to support the Pound Sterling exchange rates in the short term.
[infogram id=”ac87d385-a636-4ac3-a72e-43f19ddf538e” prefix=”DJ5″ format=”interactive” title=”2021 Q2: GBP to USD (2016-Present)”]
