This is why the Pound has plunged since yesterday's European session - Kakiforex | Forex markets for the smart money. This is why the Pound has plunged since yesterday's European session This is why the Pound has plunged since yesterday's European session

April 7, 2021

This is why the Pound has plunged since yesterday's European session

 Although the US dollar depreciated driven by a decline in US treasury yields, the Pound Sterling failed to capitalize on the opportunity to strengthen amid concerns over UK vaccine developments.


The European Medical Agency noted a link between AstraZeneca vaccine injections that had side effects of blood clots on recipients, yet such cases were extremely rare. Therefore, the vaccine is still encouraged to reduce the risk of transmission.


Due to those concerns, the Pound Sterling depreciated again against the US dollar after reaching its latest 3 -week high.



Still, reports that the UK has ordered 17 million doses of 2-injection Moderna vaccine will again allay previous concerns. The supply will be enough to meet the injection needs of its 8.5 million people.


Meanwhile, the British Agency for Regulation of Medicine and Health Products is considering a proposal to study measures to tighten the use of the Oxford-AstraZeneca vaccine to young people.


In a separate report, the University of Oxford reportedly temporarily halted testing of the Covid-19 vaccine pending further details of data on the issue of side effects of blood clots by previous injectors.


Investors will continue to monitor the development of the vaccine in anticipation of an economic recovery in the UK after UK Prime Minister Boris Johnson had earlier announced the phased reopening of the economy starting 12 April.