IFX Market Report: Tuesday 16th March 2021

The U.S. Dollar kept up its strong run of form on Monday as the Greenback made solid advances against the Pound and Euro in the London session. Markets have become increasingly positive and hopeful of a U.S. economic recovery following President Joe Biden signing into law his $1.9T COVID-19 aid package. U.S. bond yields have also remained high, helping the Greenback maintaining its strength.

GBPUSD started the week trading just above the 1.39 mark at 1.3916. Cable depreciated further as the day progressed and ended up closing the day at 1.3862.

GBPEUR also made losses on Monday – falling from 1.1660 to 1.1633 on the day. This is the second consecutive day of losses for the pair after reaching yearly highs only a few weeks ago.

EURUSD fell further on Monday as it came close to falling below the 1.19 handle. The pair opened on 1.1934 and finished at 1.1916.

Germany, France, Italy and Spain joined other EU nations in halting the roll out of the Oxford-AstraZeneca jab despite The World Health Organization (WHO) condemning the decision. German Health Minister Jens Spahn said, “the background to this decision follows new reports of cases of cerebral vein thrombosis connected with an AstraZeneca vaccination”. He went on to add that “in light of these newly reported cases, the Paul Ehrlich Institute today re-evaluated the situation and recommended a suspension of vaccinations and further analysis”. Quickly after Mr Spahn’s announcement, French President Emmanuel Macron said that France is also suspending the vaccine, noting that France has “a simple guide, to be informed by science and the competent heath authorities and to do it as part of a European strategy”. Spanish Health Minister Carolina Darias has said that the Oxford-AstraZeneca vaccine will remain suspend in Spain for at least two weeks.

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