Dollar Rally Slows Down, AstraZeneca Concerns Hurt Pound

The dollar increased slightly this morning, but is nevertheless having its softest week in 2 years (with the dollar index falling 0.9% in the week), dented by weak US job figures, disappointing Federal Reserve actions and strong European data. The USD is currently close to its two-week low at 92.171.

The euro and yen, in turn, are headed for their largest weekly percentage gains in four and five months, respectively. In the Asia session, the euro fell 0.1%, but held above its 200-day moving average at $1.1900, while the yen pushed through its 20-day moving average to settle at 109.32 per dollar. Both currencies have gained 1.3% against the USD so far this week.

The euro has also risen more than 2% against the pound this week, bouncing from a one-year low of 84.70 pence on Monday to reach 86.81 pence amid increasing concerns about the UK’s reliance on the AstraZeneca COVID-19 vaccine, which continues facing safety concerns and experiencing supply issues. Against the dollar, GBP has so far fallen 0.7% to settle at $1.3723.

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