Pound sterling increase to the US dollar in a sales session happened on Friday. The weakening USD was caused by the decline of American yield obligation , and the implementation of British vaccine.

Those factors still become the main supporter of the bullish cable. When this news released, the GBP / USD increased by 0.36% to 1.3832. That makes the rally happened on this week is completed.

Unfortunately, many analysts still doubt that the Pound strengthening will last for a long time. Why? It is because the England vaccinations program starts to be rivaled by other developed countries.

America is one of them. It does the program really well. You must be know that the vaccination in England so far always becomes the main supporter of sterling in the market.

The Fast Vaccination Is Started

Since at the beginning of 2021, Pound was strengthening because England was successful to handle several issues. One of them was to stay away from the No deal Brevity in that time.

Furthermore, the implementation of corona virus vaccine there is also really quick. Another issue which was handled is the more slack expectation of negative interest rate from Bank of England.

Until this April, the Pound movement is still so strong and can be recovered from the decline happened last week. However, that strengthen may be faded sometimes later in the future.

According to an analyst, the COVID-19 vaccination in America and European have getting wider. There is a possibility that the program will overtake England. It is a sign for Sterling.

Sterling Will Not Get a Support From Vaccination Anymore

The situation above can be a sign that in the future sterling may not get a support from the vaccination program anymore. Meanwhile, there is no risk about the negative rate from BOE.

That is the strongest possibility to happen. Pound will respond any news, but it must be known that sometimes they are quite ambiguous. Another expert named Shaun Osborne stated the same.

He think that Sterling is no longer be able to rely on vaccinations. That currency can be weakened for a while because of the supply problems. Some supplies are delayed.

It means that some countries which were previously left behind is now starting to inject the vaccine at the same daily amount like England. That is although the population is lower.

Pounds Still Have a Chance to Recover

In every condition listed above, pounds still have a chance to be stronger again. It is because the currency is supported by the England macro-economic and the vaccination effect.

Besides that the tightening BOE monetary is also the cause. Now, England is starting to do an economic normalization by re-opening the retail businesses such as Salon, gym, and open club.

However, Boris Johnson as the Prime Minister there warned his people to be careful. It is because the death rate decline is more caused by a lock down which was done 3 months ago.

It is not more because of the vaccinations. That is why; people must always do the health protocol suggested by WHO at anytime. Those are like social distancing, wearing a mask, etc.

Meanwhile, Euro Is Still Stronger

For your information, Euro has been strengthening for several days lately. That was caused by the US dollar depreciation. However, the EUR / USD rally was held when this news released.

That was under the important 1.2000 resistance limit. The single currency has more chances to be stronger again if Greenback continues to decline. How about the inflation data?

In fact that failed to be a catalyst for a further Euro rally. Eurostat announced that the EuroZone consumers inflation speed continues the rebound after the pandemic stage.