Through Friday’s session, the Pound found itself on the defensive as the latest news about vaccine shortages left very little support for the currency.
This shortage left investors concerned that the UK could fall behind its roadmap out, which would mean a delay in opening the economy. This meant that the Pound finished the day at 1.1613 against the Euro and 1.3873 against the US Dollar according to the Foreign Exchange Market.
The Euro dropped back on Friday following its negative correlation with the US Dollar. The pressure on the single currency increased after it became apparent that many areas of Europe are now heading into their third wave of coronavirus infections. This means that the European economy is still likely to struggle way into 2021.
The US Dollar finished the week on a high as the currency continued to increase in line with the rise in US Treasury yields. These gains were boosted by ongoing tensions between the US and China following a lack of progress in high-level talks on Thursday. This week, it is looking likely that the Greenback will continue to rise as it follows the growth of yields.