Concerns about UK vaccine supplies and Brexit related issues are weighing on sterling.
The EU vaccine tsar Thierry Breton announced yesterday Astra Zeneca has agreed that almost all doses made in the Netherlands will stay in the EU and the recent riots in Belfast have reminded traders of the complexities of the Brexit trade deal.
Euro (€) As Covid cases remain elevated in Europe, several countries have banned the usage of the Astra Zeneca vaccine for most adults with Italy and Spain restricting its use to over 60’s. Isobel Schnabel of the European Central Bank has warned that delaying EU fiscal aid would be a “catastrophe“ as she highlighted issues distributing the already agreed funds.
US Dollar ($) Although Federal reserve bank chairman Jerome Powell reiterated the bank’s commitment to act only when the economy fully recovers, the Dollar has benefitted from a demand for safe haven currencies. A recovery in US bond yields has also underpinned the greenback.