USD Experiences Sharp Losses as Pound to US Dollar Surges

The news of a reduced supply of coronavirus vaccine had a likely impact on the performance of the Pound on Wednesday as it ticked lower, as investors remained concerned about the economy.

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However, it did manage to make some gains against the US Dollar. As today unfolds, investors have one eye on the economic outlook from the Bank of England, which could have a positive outcome if the BoE appears upbeat about the plans to reopen the economy. However, at the end of the day, the currency finished at 1.1662 against the Euro and 1.3974 according to the Foreign Exchange Market.

There was little support for the Euro on Wednesday as domestic forecasts in Germany were lowered, downgrading forecasts from 3.7% to 3.1% as a result of rising infection rates and the current restrictions that are in place.

There were more gains for the US dollar as US Treasury yields reached a new 13 month high. Despite this, the gains were lost after the Federal Reserve suggested that the bank is not likely to increase rates for some time. The US initial jobless claims could give the US Dollar a boost if the figures continue to fall.

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