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.”