The Strategist

British pound attracts attention of investors

07/05/2021 - 04:01

Investors have turned their attention to the British pound, Bloomberg reported.

Investors in the British pound have been taking notice of the pound, Bloomberg reported.

The UK is an example of a strong economy facing infection with a new strain of Delta. At the same time, the country has a good vaccination rate for its citizens. In this sense, the UK provides a roadmap for how developed countries will emerge from the economic crisis caused by the pandemic.

However, the decision of the British authorities to extend the restrictive measures related to the pandemic until 19 July has put pressure on the pound. Moreover, it is not known where the exchange rate will go after the 19th.

Experts surveyed by the agency believe that the British currency will strengthen slightly by the end of the year. 

It is reported that the pound's position in June was its worst in nine months. The currency sagged amid general concern over the spread of a new strain of the Delta coronavirus.

While the number of COVID-19 cases is breaking January records, the number of deaths and hospital admissions in the UK has managed to be contained. This has made a strong case for vaccination. About half of Britain's population has now been vaccinated, the agency's figures show.

However, reports on deaths and hospital admissions may not be in line with reality. Next weeks' figures will be decisive.