HSBC has not extended its support of the GBP to see gains similar to the ones made in the first quarter of the year. This was announced in the latest monthly currency research briefing. However, it also pointed out that there is a lot of optimism about the UK’s successful vaccination programme and its “freedom day” on July 19th. 

Paul Mackel, Global Head of FX Research at HSBC said, "we are sceptical of how much this can further benefit GBP.” He continued, “Although GBP is down from its highs for the year, there is a lot of positivity priced into the currency, especially when one considers the relative movements in rates and equity flows.” 

During the first quarter, the UK's quick rollout of Covid-19 vaccines attracted a lot of investor’s attention and led it to outperform other currencies. At the time of writing, the GBP/EUR is being traded at 1.1700, whilst the GBP-to-USD exchange rate trades at 1.3855. 

On the other hand, the Pound-to-Australian Dollar exchange rate has reached a new high, trading at a spot rate of 1.8566. this take place despite Sydney’s lockdown potentially being extended. In addition, the People's Bank of China (PBoC) decision to add fresh stimulus in the form of a Reserve Requirement Ratio (RRR) cut also had an impact on the rate. “My own view is that the main intention of this cut is to help banks with their capital and liquidity requirements,” ING Chief Economist, Iris Pang said.