Pound Sterling Can Rise Further against the Euro and Franc: Goldman Sachs

The UK government will likely bring forward its reopening plans for the country as the vaccination programme reaches a tipping-point say analysts at a major investment bank, a prediction which if proven correct could aid further gains in Pound Sterling.

The key near-term highlight for the British Pound is the budget for 2021, due to be revealed by Chancellor of the Exchequer Rishi Sunak on Wednesday.

The British Pound went higher against the world's major currencies following the announcement of the UK government's spending and tax plans on Wednesday, with economists saying the measures are likely to boost the economic recovery.

For the British Pound, most of the good news could now be 'in the price' according to analysts at two of the UK's most recognisable high-street banks, meaning the bar to further gains might be a great deal higher.

The British Pound held onto gains against the Euro, Dollar and the majority of the major currencies following the 2021 budget announcement, which saw the negative impact of a tax rise on businesses cushioned somewhat by other pro-business initiatives.

The British Pound starts the new week materially lower than where it was at the half-way mark of the previous week thanks to an aggressive sell-off on Thursday and Friday, and one analyst we follow says the currency has now peaked.