The European Union is expected to regain what it has lost in the coming months, as more vaccines are distributed.
Last November, the world restored hope in the fight against the Covid-19 pandemic when three companies – Pfizer / BioNTech, Moderna and AstraZeneca – announced potentially effective vaccines. These announcements showed enough light at the end of the tunnel to decisively push the markets up.
However, countries are now in a race to obtain herd immunity through vaccination, with the UK one step ahead of the rest of Europe in terms of containing Covid-19.
The exchange rates reflect the success of the vaccination campaigns
Le Royaume-Uni a commencé la campagne de vaccination plus tôt que la plupart des autres pays en utilisant ses procédures d’urgence pour autoriser les nouveaux vaccins, alors que le reste de l’Europe a subi un fiasco vaccinal au cours du premier trimestre de this year. In other words, the European Commission ordered its vaccines too late compared to the US and UK.
The currency market has sold the EUR / GBP exchange rate since the beginning of the year, with the cross dropping from 0.90 last December to below 0.85 a week ago.
The EUR / USD pair also closely reflects the differences in vaccination campaigns. The year opened above 1.23, then fell to 1.17 at the end of March. However, the EUR / USD has fallen from 1.17 to 1.20 recently as the vaccination rate increased across Europe.
The President of the European Commission, von der Leyen, announced yesterday that the European Union has reached the mark of 100 million vaccines, which, if you consider that a quarter of those vaccines were second doses, this means that about 25 million Europeans have been fully immunized. .
The road is still full of pitfalls. Delays in deliveries and questioning AstraZeneca and Janssen vaccines could mean that other parts of the world are racing forward. Whatever happens, it will be reflected first in the currency markets.