Although coronavirus related deaths have now exceeded 100,000 in the UK, there is positivity about the vaccine rollout especially when compared to other countries. This is continuing to give the Pound an edge against both the Euro and the Dollar.
The Euro has lost ground against the Pound over the last 24 hours. German consumer climate data came out worse than expected this morning at -15.6 compared to -7.8 that was forecast. Both Pfizer-BioNTech and AstraZeneca have suggested that they won’t be able to provide the expected number of vaccines to the EU due to production issues which has caused concern in the market.
The Dollar remains weak in the run-up to the FOMC interest rate decision and press conference this evening. It is not expected that the current interest rate level will be changed but comments from Federal Reserve Chairman Powell about potential future changes in the central bank’s quantitative easing program could cause some volatility.