Sterling was slightly increasing in the Monday sale session. That currency continues its good trend since the end of last week period. The weakening USD becomes one of the causes. 

Furthermore, the easing of social restrictions in the second phase of the UK also supports the GBP / USD strengthening at the beginning of this week. When this news writtened, that pair increased by 0.24%.

It reached the level of 1.4127 which becomes the highest achievement for that GBP / USD since 25 of February. Will this trend continues? There are some opinions about this thing. 

A Strong Optimism Amidst the UK Economic Normalization 

The United Kingdom government is vigorously loosening the social restrictions. Before, it was tightly implemented to avoid the spread of the COVID-19 disease. Several indoor places are now opened. 

Those are like the bars, cafes, restaurants, and so on. The flight restrictions are now revoked as well. The ING analyst team stated that the current movement is quite good for the GBP/USD.

The massive economy open in England yesterday must get the warm welcome from the asset market and it may support the Poundsterling strengthening. However, there is one thing to know. 

Amidst that euphoria, there is a concern about the new variant of the coronavirus. It is called the B.1.617.2 and the one comes from India. The scientist said that they will be the most dominant type. 

The Optimism is Still Amazing

The analysts stated that the new covid variant can be more contagious than the others. However, the optimism about the UK economy recovery is still high and its economic outlook activity may increases. 

The Sterling achievement so far is also supported by the hawkish sentiment from the Central Bank of England and the wide COVID-19 vaccination. BOE has reduced the asset tapering.

It was done although there isn’t any indications for the interest rate increase. The analysts predicted that there are two main factors that support the Pound Bullish. What are those factors? 

First is the UK economic recovery and the second is the long journey for Scotland to get its independence from the England. This week, many economy datas will be released by that country. 

The Important Data Release is Awaited

The essential data that will be released are varied. Those are like the employment, retail sales, and the PMI index. They are going to be released in a row from Tuesday to Thursday this week. 

BOE is quite optimistic with the new members and the data release. They have a potential to show the general economy situation in England and for sure the strengthening extension of Sterling. 

The Australian dollar created its lowest record in 0.7745 to USD in an Asian session yesterday. Aussie was pressured by the China economic data release which was quite disappointing among the lockdown. 

It is known that some lockdown decisions can be found in the Asian continent. Meanwhile, the risks of the declined commodity price is now highlighted by the market and becoming their focus. 

The Chinese Monthly Industry Production Data

The data of monthly industry production in China showed the slow speed from 14.1 percent in March to become 9.8 in April. The asset Investment is slower as well and the retail sales too. 

Those are the bad signs for Australia because China is their main destination for various commodities. The possibility of the China government intervention becomes the focus too. 

Last week, the Country representative stated that China will track all the changes happened on the domestic and international market. That is done to handle the commodity price effectively. 

They want to maintain the increasing prices as good as possible. In fact, that announcement affected several commodities. One of them is the ore priced which is declining because of that.