Pound sterling is able to reach the 1,4250 level to the US dollar in a trade done yesterday. It reached its highest revel since April 2018. However, that currency then stepped back to a point around 1,4214.
That happened on the beginnig of the European session because of the concern about the spread of the new COVID-19 variants from India. Sterling is also started to be pressed by the Euro and Japanese Yen.
England has been starting its loosening for various lockdown rules gradually. That has been done since several months ago. They also planned to erase all the social limitation on June, 21st.
The British Economy may be Recovered
If the plan above is successfully done, the British economy has a potential to continue its accelerated recovery. That can make them as a leading country than the other major countries in the world.
The latest situation showed that the expectation maybe will be not done smoothly. Some experts have suggested that the deadline for lifting social restrictions be postponed for the next few weeks.
It is because the UK government has not taken into account india's COVID variants when drawing up the plan. The latest statistics show that the number of COVID-19 cases is starting to rise again sharply in the UK.
However, the number of patients who have to be hospitalised and the number of patients dying does not increase significantly. This situation presents a dilemma, so there is that the government must wait for the data.
An Obstacle to Normalize the Economy
The latest news about the pandemic frontline are not all positive. The concern is increasing due to the fast spread of the new COVID-19 variant in India. That becomes an obstacle so far.
It is especially for the government which wants to normalize the economy in the next month. These concerns come together with the developed public criticism to the representatives responds about corona.
That condition may triggers the negative GBP vs USD and EUR in a short-term period. Chris Turner from the ING Bank gave the same opinion. Besides that, some analysts give their warning.
It is a warn where the market must be not totally believe the statement made by Gertjan Vlieghe as the member of BOE. It is because a faster interest rate increase will need so many requirements.
The Latest News about the Australian Dollar
The Australian Dollar stepped back from its highest daily level in 0.7768 to the USD in the yesterday trade. That followed an announcement made by the Australian Central Bank or RBA.
Their announcement was dovish where RBA stated again due to many kinds of requirements will be needed for the new interest rate increase. That can be fulfilled someday in 2024 as the most possible time.
In a meeting held yesterday morning, RBA decided to maintain its interest rate and 3-year obligation yield target based on the market expectation in 0.10 percent. However, their opinion is getting more careful.
It is because the lockdown is made in several places lately. The example is in the Victoria, an area which becomes the second largest population and The increasing coronavirus cases there.
The Jobless Rate in Australia
Lowe predicted that the jobless rate in Australia needs to be reduced until it becomes Newark 4 percent. It is essential so that the national salary growth can be triggered. That plan seems quite difficult.
The latest jobless data in April is still 5.5 percent. The RBA governor aksi predicted that the salary growth must be increasing for more than 3%. It is importany to make the inflation target is able to reach the target.
For your information, the central bank target is 2-3 percent continuously. The fact is that the salary growth in Australia is just 1.4 percent. The minimum prospect like this, the Australian dollar is hard to move better.
