Sterling Rises to 1-Month Highs, Could Target $1.2750

Sterling rises to one-month highs against the dollar and the euro, lifted by increased risk appetite, with stocks rising while the dollar falls broadly. ING says sterling “is making an impressive recovery” after EUR/GBP broke below an important chart level at 0.8740, while a softer dollar could lift GBP/USD to 1.2750. GBP/USD is last up 0.5% at 1.2560, having hit a peak of 1.2574, according to FactSet. EUR/GBP falls 0.3% to a 5-week low of 0.8700. Last week’s announcement of temporary monetary financing from the Bank of England “has not hurt the pound,” says ING. UniCredit analysts note the fact that U.K. Prime Minister Boris Johnson has left hospital may help sentiment towards sterling.