FOREX
The euro is on the front foot during early Thursday trading, gaining ground on both the dollar and the pound. The single currency’s strength comes on the back of positive developments about the availability of vaccines on the continent during the second quarter, where a substantial increase in supplies is expected. One of the reasons, perhaps the greatest one, for the euro’s weakness during the first three months of the year was a suboptimal management of the vaccination program, which compared unfavourably with the smoother UK and US’s roll-outs. However, that looks like it is about to change. This scenario provides an improved outlook for the euro and further strengthening may occur, especially versus the pound, as roles seem to have switched with doubts emerging over the future availability of vaccine supplies in the UK.
Ricardo Evangelista – Senior Analyst, ActivTrades
