British Pound Rises Amid Economic Optimism

The market mood was positive Monday amid economic optimism.

The best performer was the British pound which broke out of its consolidation range, heading for a test of the 1.4250-level. The U.K. plans to fully reopen the economy on June 21 and the pound’s strength reflects the nation’s relative success in containing the pandemic. The U.K.’s economic recovery is also fueling speculation the Bank of England could start to raise interest rates by August 2022.

GBP/USD: Technically, the 1.42-level could now serve as a short-term support while the next target for sterling bulls is 1.43. Above 1.4320 bulls may try to extend the rally towards 1.4376, the April 2018-high.

DAX: It seems as if the index is taking a breather given its recent lackluster performance. We see a next bullish target at around 15680 whereas on the downside, the 15200-area could serve as a support.

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