GBP/USD: PM Johnson to boost vaccination campaign and sterling with military assistance

GBP/USD is trading below 1.36 as US yields boosted the dollar and markets ignore Capitol storming. According to FXStreet’s Analyst Yohay Elam, sterling may shoot higher on UK military assistance to vaccination campaign.

Key quotes

“A well-organized mob incited by President Donald Trump captured the Capitol in pictures unimaginable in the world’s strongest democracy. Investors may have been glued to the dramatic scenes, but focused on who sits in Congress after the mob was seen off – full Democratic control. Both Democratic candidates Jon Ossof and Raphael Warnock won against Republican incumbents and secured effective control of the upper chamber. That enables Biden to push for more stimulus.”

“Johnson has convened a press conference for later on Thursday to discuss the vaccine rollout – which includes Brigadier Phil Prosser. Prioritizing immunization could help the country heal medically and economically. If Johnson sets out ambitious goals, sterling could shine – even though investors know these objectives could be missed.” 

“Markit’s UK Construction Purchasing Managers’ Index came out at 54.6 points, within expectations. The focus later shifts to the US ISM Services PMI – a hint toward Friday’s Nonfarm Payrolls. Weekly jobless claims are also of interest and weak figures in both publications could weigh on the dollar.” 

“Some support awaits at 1.3545, the daily low, followed by 1.3480, which provided support in the holiday season. Resistance awaits at the daily low of 1.3565, followed by 1.3675, Wednesday’s peak.”