Pound Higher As Virus Cases Continue To Drop

The pound climbed against its major counterparts in the European session on Tuesday, amid continued optimism over a fall in virus infections in the U.K.

The U.K. recorded 21,952 new cases and 24 new deaths on Monday, down from 24,470 infections and 65 fatalities seen on the previous day.

The 7-day average of new COVID-19 cases dropped 27 percent to 184,550 from the previous week.

In an interview with LinkedIn, Chancellor Rishi Sunak recommended young people to return to the office gradually as the restrictions were removed.

It is up to businesses to work with their teams to figure out the right approach in terms of a return to work, Sunak added.

The Bank of England's monetary policy decision is due on Thursday, although no policy changes are expected.

Economists expect the bank to push back prospects for a premature tightening as the Delta variant is likely to cloud near-term outlook.

The pound edged up to 152.10 against the yen and 1.3933 against the greenback, off its early lows of 151.54 and 1.3874, respectively. The pound is seen finding resistance around 154 against the yen and 1.41 against the greenback.

The pound reversed from its prior lows of 0.8551 against the euro and 1.2552 against the franc, rising to 0.8532 and 1.2596, respectively. The next possible resistance for the pound is seen around 0.83 against the euro and 1.28 against the franc.

Looking ahead, U.S. factory orders for June will be released at 10.00 am ET.