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Sterling Holds Ffirm as Vaccine Jitters Ebb

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LONDON, March 17 Reuters Sterling held firm against both the euro and the dollar as Britains dismissal of safety concerns over the AstraZeneca vaccine gave the currency some berth to recovery from the previous days falls.

A number of European countries, including Germany, France and Italy, have suspended AstraZeneca shots following reports of blood coagulation disorders in some recipients. Their safety concerns prompted a selloff in the pound on Tuesday as Britain is continuing to administer the vaccine.

Sterling then recovered some of those losses on Tuesday after Europes medical watchdog, echoing other health bodies, reiterated its view that there was no evidence that the vaccine was unsafe.

By 0900 GMT on Wednesday, sterling was flat against the dollar at 1.3898 and 0.1 higher to the euro at 85.60 pence, not far off a years high of 85.40 pence per euro.

UK authorities have dismissed safety concerns on the AstraZeneca vaccine, which should leave the pound less vulnerable than other European currencies to the suspension story, said strategist at ING in a note to clients.

A waitandsee approach may prevail in GBP price action as we head to the Bank of England meeting tomorrow.

Hopes that Britains rapid vaccine rollout will lead to a faster reopening of its economy and a rebound from its worst annual contraction in output in 300 years have benefited sterling this year, with the pound until recently the best performing G10 currency.

However, as a spike in U.S. bond…

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