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Sterling Takes British Reopening Delay in its Stride

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Pound down 0.1 vs dlr and 0.2 vs euro in quiet session

Reopening delay largely expected after rise in coronavirus case

LONDON, June 14 Reuters Sterling was largely unmoved by Mondays news that Britain is set to delay the end of social distancing measures as the government seeks to contain a rapid rise in COVID19 infections.

Prime Minister Boris Johnson is expected to announce a delay of four weeks to his February roadmap, under which his government signalled that all social restrictions to control the spread of the disease would be lifted no earlier than June 21.

Sterling, which has been one of the best performing currencies in 2021 as investors bet on a strong British economic rebound, hovered just below recent highs.

Against the dollar it dipped as much as 0.3 to a onemonth low of 1.4069 but recovered some ground to 1.41, down 0.1 on the day.

The euro was 0.2 stronger against the pound at 85.96 pence , still stuck within the range of the past two months.

ING analysts said a delay to the easing of restrictions was expected and investors were more focused on economic data.

We do not think this does too much damage to GBP, which instead will be focused on fresh macro updates on jobs and retail sales both expected to be GBP supportive, they wrote.

Bank of England Governor Andrew Bailey is due to speak at an event later on Monday, with investors watching for any signals on the direction of monetary policy and his views on inflation.

The central bank has taken…

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