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Sterling Rises Against Dollar at Start of DataHeavy Week

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LONDON, April 19 Reuters The pound rose to hit a twoweek high against the dollar on Monday at the start of a dataheavy week that is expected to provide more evidence that Britains economy is rebounding from its deepest recession in 300 years.

The pound had a strong first quarter, supported by dwindling expectations of negative interest rates and by a fast rollout of vaccinations against COVID19 across Britain.

As England reopened shops, hairdressers, gyms and pub gardens in April, analysts expect a faster economic recovery in the United Kingdom than in the European Union, which is facing a third wave of infections.

Traders will be watching PMI surveys for the UK, together with data on the labour market, inflation and retail sales this week.

Both ING and UniCredit analysts told clients there was scope for sterling to strengthen to 1.40 this week.

GBP continues to find support on dips and it seems like investors are happy enough staying positioned for the 2Q UK reopening story, said Chris Turner, Global Head of Markets at ING.

Today we have already seen some encouraging April Rightmove house price data, he said.

Advertised prices for homes in Britain hit a record high after finance minister Rishi Sunak stoked the market again by extending a tax cut for homebuyers last month, property website Rightmove said on Monday.

Speculators net long position on the pound versus the dollar rebounded in the week to April 13 after slipping to its lowest since February in the…

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