The Pound lost some footing on Wednesday against the US Dollar and the Euro, finishing at 1.3735 and 1.157 respectively, according to the Foreign Exchange Market.
This was down to the news that vaccine supply was still shrouded in uncertainty while the safety of the Oxford-Astrazeneca vaccine also posed concerns. Despite this, the Pound still remained stronger thanks to the latest PMI data which indicated that the services sector grew during March for the first time in six months.
The Euro is also being impacted by the latest vaccine news as it is dependent on the Astrazeneca vaccine to help the economy recover. There is a lot of hope based on the latest minutes from the meeting of the European Central Bank, whereby investors will be looking for any hints of an economic recovery in Europe despite the third wave taking hold.
The minutes from the Federal Reserve’s latest meeting were also scrutinised by investors as officials indicated that they would take a cautious approach to monetary policy until there is more certainty around an economic recovery. While the recovery is going well, support will still be provided and that will dictate the direction of the US Dollar.