Volatility returned last week as the markets started to take seriously the chances of a sharper recovery than many investors had been anticipating.
Last week saw Sterling continue to rally and now stands some 5.5% higher against the dollar than it did in mid-December and 6.55% higher against the euro. Several factors are driving the currency, most notably the continued expansion of the vaccination programme, which now sees over one-third of the population inoculated.
With the celebrations for Chinese New Year slowed the currency markets last week, despite this it did not slow the pound’s progress, which saw it consolidate recent gains above the $1.3750 level – thanks to the continuing success of the UK vaccination programme.
A review of the stock markets with an analysis of how Sterling measured up against other currencies and the impact of vaccinations on the stock market.
Our review of how volatility returned to the markets with a vengeance last week as small traders took on the wall street monoliths in the stock market.
In a week that will see Joe Biden inaugurated as the 46th US President, both vaccinations and viruses are set to dominate as the market has returned its attention to COVID-19 and the proposed stimulus package.
With the world’s markets waiting for the release of the Non-Farm payrolls data, news of President Trump and his wife Melania testing positive for COVID-19, saw the markets knee jerk reaction was a flight to safety which benefitted the dollar, yen and to a lesser extent the euro.