Yahoo Finance Pound moves higher as Chancellor Rishi Sunak unveils recovery plan
The pound pushed higher today after Chancellor Rishi Sunak unleashed a range of policies to boost the UK economy.
Sterling traded at $1.2559, up from $1.2540 before the start of the speech as confidence grew that the UK could avoid a deep, long recession.
The Chancellor said the country is now in the second stage of recovery from coronavirus.
Sunak said the the second phase of the Government’s plan is about jobs, with the third phase focused on rebuilding.
Savvas Savouri, chief investment officer at Toscafund Asset Management, said: “Whatever my best expectation for the rebound in the UK labour market, and I was amongst the most positive, this speech has supercharged my confidence.
“Why is sterling rising? Because the recovery will be so swift that the Bank of England will be able to think about raising interest rates long before other central banks.”
Neil Wilson at Markets.com added: “Seems to be a little more meat about this statement than the pre-announcement leaks indicated. Sterling like Rishi, seems confident and able.
“Headlines like £9 billion job retention scheme, £1k bonus for returning furlough workers all to the good.”
Chris Beauchamp, analyst at IG, continued: "At first glance the market reaction has been positive with sterling rallying against the dollar.
"Investors evidently deciding an activist government with money to spend is better than one looking to save money at the risk of an even deeper recession."
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