"The pound is starting to lack the impetus to challenge the 1.40 level versus the dollar, despite the dollar’s recent correction.

A couple of weeks ago the market had taken on the characteristics that would have been expected from economies that were recovering at different paces, but that has now changed.

The success of the vaccination programme has given more support to the economy than the various support packages delivered by the Chancellor and the Bank of England.

With another stage in the reopening process taking place next week, the short-term prospects for the UK remain sound. Although official bodies are predicting strong growth for the UK well into 2022, there are concerns building that the withdrawal of stimulus and changes to taxation may hit the country’s longer-term prospects.

There are still the twin issues of rises in inflation and unemployment to be faced and the outlook could turn bleak as the country enters the Autumn/Winter period.

"

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.