17.05.202113:46 Forex Analysis & Reviews: Britons cheer end of lockdown that benefits GBP

The UK is ready to go back to normal life as the authorities are lifting social restrictions. Starting from May 17, England, Wales, and the most part of Scotland are eventually reopening businesses and lifting a ban on travelling abroad. People are allowed to assemble in closed premises, dine out in restaurants, stay in hotels, visit museums, theatres, cinemas, children's playgrounds, concert halls, and stadiums. The precondition for such gatherings is that no more than 6 people or 2 households can stay inside a premise. Besides, a group of up to 30 people can assemble in the open air.

British Prime Minister Boris Johnson announced that some precautionary measures are needed. So, the Britons are obliged to have coronavirus tests twice a week. Citizens of England and Scotland are given the opportunity to order tests free of charge which will display results in 30 minutes. At the same time, in Wales and Northern Ireland this service will be available to particular groups of citizens, for example, to those who are not involved in teleworking.

In fact, investors are still worried about a new more contagious coronavirus strain designated as B.1.617.2. Nevertheless, the market cheers a revival of the social life in the Kingdom that benefits sterling-denominated assets and the British currency itself. The pound sterling is holding the upper hand over the US dollar. The sterling has been gaining ground for two weeks in a row. Today GBP/USD is trading firmly at near 1.4099 that is below support of the upward channel. In the early London session, the currency pair was trading at about 1.4097.

Back to the fundamental background, Brexit and three lockdown entailed a severe downturn in the British economy that dealt a blow to the labor market. As soon as British businesses began hiring new employees, it became evident that people were in no hurry to employ in the hospitality sector and in retail sales, opting for more reliable vacancies. Interestingly, according to the survey of Adzuna recruitment website, one applicant can choose from 10 vacancies in some British towns.

On the other hand, unexpected vacancies cannot be filled by foreign applicants as they have minor interest in employment in the UK. Referring to the Bureau of National Statistics, the number of foreign citizens working in the UK dropped 4% in the last 3 months of 2020 from the same period in 2019.