Last week got a long overdue trim over other currencies hard-won gains to finish the week at nearly two and a half euro cents lower than it started. The worries over the danger to health from the Astra Zeneca vaccine came to the fore almost simultaneously with Europe showing a more coordinated approach to vaccination.
In the run up to Easter, the currency markets remained dominated by the familiar themes of vaccinations and infections, with a strong link between the vaccination programme’s speed and the strength of the currency.
A look at how Sterling was having a relatively quiet time and avoided a buffeting like other currencies received from the resurgent dollar.
A look at how first UK lockdown impacted on the currency markets and still being driven by the same concerns of the economic fallout from that decision.
A review of last week currency markets, which dominated by the US bond market’s gyrations last week as the dollar rose and fell in unison with yields.
A look at how the rising yields dominated the headlines last week. with a strong comeback of King dollar and that of the vaccination programme, at a speed of which it is being implemented is now raising concerns about the inflationary impact of a rapid bounce back by economies.
Volatility returned last week as the markets started to take seriously the chances of a sharper recovery than many investors had been anticipating.
Last week saw Sterling continue to rally and now stands some 5.5% higher against the dollar than it did in mid-December and 6.55% higher against the euro. Several factors are driving the currency, most notably the continued expansion of the vaccination programme, which now sees over one-third of the population inoculated.
With the celebrations for Chinese New Year slowed the currency markets last week, despite this it did not slow the pound’s progress, which saw it consolidate recent gains above the $1.3750 level – thanks to the continuing success of the UK vaccination programme.
A review of the stock markets with an analysis of how Sterling measured up against other currencies and the impact of vaccinations on the stock market.