The pound and euro are expected to be further depressed amid the COVID-19 vaccine fight between the EU and the UK. Ahead of the opening of the European session today (24/March), GBP/USD has fallen to a record low in a month at a range of 1.3700.
Meanwhile, EUR/USD fell to a four-month low. The improvement in UK employment data did not succeed in boosting Cable. The UK Office for National Statistics (ONS) yesterday reported that the unemployment rate fell from 5.1 per cent to 5 per cent. T
he data was taken in January 2021, better than the estimated increase to 5.2 percent. Elsewhere, the Pound did not respond to the good news amid the emergence of sentimeb risk off as well as the strengthening usd in global markets.
Vaccinations in different countries began to show results. The scarcity of vaccines is now also a discussion itself among market participants because it can affect prices. How can it has an impact in the global market?
Side Effects of Vaccine Scarcity
Meanwhile, the experts are increasingly highlighting the potential side effects of the scarcity of the coronavirus vaccine. As it is known that the two areas often make the product. The British currency has strengthened throughout the first two months of 2021.
This is due to a very impressive vaccination program. Data last week showed that around half of the adult population in the UK has received the vaccine. However, the vaccination rate is at risk of stalling if the EU blocks its delivery process to the United Kingdom.
A number of EU member states believe that the sluggishness of their vaccination programs is because of the lack supply from AstraZeneca as one of the producers in the world. This is what then brings up some actions to do in the future tekait that topic.
The solution is to limit AstraZeneca's vaccine exports several countries in the world and in the United Kingdom for sure. Market participants will highlight the continued developments in this issue to take a better action in the future.
The Development of the Pound May Be Affected By Vaccination
In the short term, the pound is seemed to remain driven by developments between the UK and other vaccines suppliers in the world. It is especially due to reports of a potential supply slowdown in the next few weeks. This was conveyed by world economists.
On the other hand, Barclays claims the problems in the EU vaccination programme are not only a lack of supply, but also low public confidence. The decline in trust is not for the whole product, but only AstraZeneca.
The level of public confidence in astrazeneca vaccine is indeed decreasing with pesa. This is due to rumors of the deaths of a number of recipients, so people are reluctant to follow vaccinations. The issue of blood thickening cases is also an interesting topic.
That becomes the consequences of the EU's haphazard approach to their COVID-19 vaccination program. One example is astrazeneca suspension that was done some time ago. In some other countries, the product still has to be re-examined.
Vaccination Continues in Various Countries
Several countries in the European Union have resumed giving AstraZeneca. This comes after a safe clarification from local health authorities. However, the results of the latest YouGov survey show the majority of Germans, French, Italians and Spaniards still consider it unsafe.
Various problems in the vaccination program further exacerbate the euro's outlook. The currency is also being hit by a new current lockdown due to the third wave of COVID-19. The possibility of vaccine delay may slowing down thd recovery of growth (economy)
This was conveyed by Barclays which maintained a bearish outlook on the euro. The bank expects eurozone growth. It is likely that growth will remain sluggish and inflation remains well below the ECB's current target.
