Pound Recovers After Vaccine Concerns

The pound sterling strengthen against the greenback and euro after concerns over the COVID-19 vaccine manufactured by AstraZeneca were dismissed by the UK government. It was reported that some European countries had suspended the AZ vaccine after some recipients reported problems; that led to yesterday’s selloff of the pound as the UK government continues to use that vaccine in its widespread program. A number of experts across Europe have since come forward and dismissed the findings, saying that the vaccine was safe and that evidence of a problem was not found.

In London trading as of 11:01 am, the GBP/USD was trading higher at $1.3903, a gain of 0.0612%, off the session peak of $1.39304. The EUR/GBP was up at 0.8566 pence, 0.117% higher; the pair has ranged from a trough of 0.85397 pence to a peak of 0.85759 pence. The GBP/JPY was up at 151.625 yen, a gain of 0.1103%; the session high was recorded at 152.027 yen.

Markets to Focus on Fed and BoE Policy Decisions

Looking ahead to market moving events, the Federal Reserve will announce its latest monetary policy decision later today. A recent poll of economists shows that that majority believe the Fed will hold rates at the current low level of 0.25%. What will be more important is the press conference afterward, generally presided over by Fed Chairman Jerome Powell. Markets are anxious to get some hints on the timing of a possible interest rate increase. Tomorrow, the Bank of England will similarly announce any changes to monetary policy. Analysts expect the BoE to maintain the status quo, for the time being. Again, they will scrutinize the statement from BoE Governor Andrew Bailey to determine interest rate direction, which would impact the pound.

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