EUR/GBP price, news and analysis:
- The suspension of usage of the AstraZeneca/Oxford coronavirus vaccine in several EU countries for fear of side effects is fueling the impression that Europe’s vaccination rollout program is lagging behind those of other countries such as the US and the UK.
- That will likely continue to weaken the Euro, with crosses like EUR/GBP likely to slide.
Further EUR/GBP weakness likely
The impression that the EU coronavirus vaccination program is lagging behind those of other countries such as the UK and the US continues to damage the Euro, with EUR/GBP likely to be one of the crosses hardest hit. Several EU countries have suspended usage of the AstraZeneca/Oxford jab for fear of side effects even though the European Medicines Agency has stated that the “benefits of the AstraZeneca vaccine in preventing Covid-19, with its associated risk of hospitalisation and death, outweigh the risks of side effects.”
EUR/GBP Price Chart, Daily Timeframe (December 10, 2020 – March 17, 2021)
Source: IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | 6% | -3% | 2% |
| Weekly | -15% | 26% | -3% |
The EMA has said it will further review the information about the vaccine and has called an extraordinary meeting on the issue for Thursday. However, there is no indication that it will change its mind.
Bank of England in focus
On the same day, the next meeting of the Bank of England’s monetary policy committee needs watching by EUR/GBP traders. The BoE will not change its interest rates or its asset buying but will likely point to a faster economic recovery than previously expected thanks to the UK’s successful vaccine program.
That would be broadly negative for EUR/GBP and positive for the Pound against other currencies.
--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
