On Thursday, the pound stabilized against the dollar and euro, halting some of its losses after a sharp bout of profit-taking a day earlier. The pound fell 0.6% to a weekly low against the dollar and about 1% against the euro on Wednesday as investors pulled money off the table after a strong first quarter for the British currency.
But by 0847 GMT on Thursday, the pound was flat against the dollar at $ 1.3725, according to Yahoo! Finance hitting a low this month the day before. According to Yahoo !, against the euro, it fell slightly to 86.42 pence per euro. Financials after the worst day against the single currency in five weeks.
ING analysts wrote that the pound’s pullback was “exaggerated”, adding that they “remain constructive on the currency,” citing the relatively swift coronavirus vaccination program in the UK. Expectations for a recovery in the UK, fueled by rapid COVID-19 vaccinations, helped the pound sterling record its best quarter since 2015 against the euro.
Also helped by lower expectations that the Bank of England will push interest rates into negative territory. Britain is ahead of the rest of Europe in the race to vaccinate its population, with nearly half of its citizens receiving the first dose. But supply problems for the core Oxford-AstraZeneca vaccine have slowed progress in recent days.
(This story was not edited by Devdiscourse staff and was automatically generated from a syndicated feed.)