The pound is gaining ground on both the dollar and the euro during early Wednesday trading, as investors feel reassured by the successful vaccine roll-out in the UK. Compared to the US and European vaccine deployments, the UK’s effort has proven more successful so far with 11% of the population already having received at least the first inoculation. The immunisation of a significant part of the population is seen as imperative in stopping the deadly and economically damaging cycle of pandemic waves and lockdowns. As the markets appear optimistic about the prospects of the UK’s economic recovery, and subsequently a lower likelihood of the Bank of England introducing negative interest rates, sterling is likely to continue to find support.
