FX MARKET REPORT 17.03.2021

FX MARKET REPORT 17.03.2021

FX MARKET REPORT 17.03.2021

Daily Commentary
FX MARKET REPORT 17.03.2021
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FX MARKET REPORT 17.03.2021

GBP/USD gained traction on Wednesday and built on the overnight bounce from one-week lows. The uptick was solely led by some cross-driven strength stemming from a fall in the EUR/GBP. The debacle around AstraZeneca’s COVID-19 vaccines continues as the old continent is struggling to get jabs into its citizens’ arms and even if the crisis is resolved shortly, many European would still refuse this specific inoculation – or perhaps others. The European Medicines Agency is set to announce its verdict on the safety of AZ’s immunization on Thursday after cases of blood clots seemed to be correlated with the jabs. Several European leaders hinted that vaccination will likely return. However, a message saying that the benefits of the injections outweigh the risk could do little to alleviate concerns. Support awaits at 1.1870, which was a stepping stone on the way up last week, and that is followed by the 2021 trough of 1.1836. Above 1.1910, the next cap awaits at 1.1950, which held EUR/USD down on Tuesday. GBP/EUR is trading around the key level 1.17 on the back of euro-weakness, the highest level since 24 Feb 2020. A more than one-year high. The upside seems limited ahead of Wednesday’s FOMC decision and BoE meeting on Thursday. The dollar index was up 0.1% at 91.925, having risen for three straight sessions on support mainly from elevated U.S. bond yields. USD/JPY was up 0.2% at 109.15, near the nine-month high hit earlier this week, and ahead of the Bank of Japan’s two-day policy meeting ending Friday.  AUD/USD dropped 0.1% to 0.7736.

GBP/USD gained traction on Wednesday and built on the overnight bounce from one-week lows. The uptick was solely led by some cross-driven strength stemming from a fall in the EUR/GBP. The debacle around AstraZeneca’s COVID-19 vaccines continues as the old continent is struggling to get jabs into its citizens’ arms and even if the crisis…

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