Currency Update.

Due to a strong vaccine-lead recovery, the British Pound reached new highs against EUR and USD. On Monday, the Sterling set a new nine-month high against the Euro and a new 34-month best against the Dollar. Global stock markets rose along with the Pound, which kept its 'high beta' with global investor sentiment this year.

At the time of writing, the exchange rates were GBP/EUR: 1.1447 and GBP/USD: 1.3886. 15 million of the UK’s most vulnerable citizens received the first vaccine dose, the British Government announced on Sunday. Analysts noted, "The British Pound is set to extend its winning streak in the near-term, as the successful vaccination campaign could give the UK a major advantage. The currency is likely to test the 1.40 level against the US dollar soon and gain further ground against the Euro."

Furthermore, economists pointed out how the vaccination process boosted the UK currency, “GBP/USD appreciated towards 1.3900 after UK Prime Minister Boris Johnson announced the UK had vaccinated 15 million people, or roughly 25% of the population. The UK’s vaccination program can underpin GBP.”

Moreover, the Pound-to-Canadian Dollar rate was being traded at 1.7602 this morning, close to 1.78 a six-month high. Similarly, the Pound-to-New Zealand Dollar is also close to multi-week highs as it trades at 1.9194. The Kiwi Dollar is expected to advance throughout the year, according to analysts.