In Currencies, Europe’s Vaccine Trade Is Now Reversing
Article summary
Bloomberg) — Currency traders have reaped gains this year betting on the U.K.’s vaccine success and against Europe’s stumbles. It comes after months of the U.K. currency outpacing that of its nearest neighbor, racking up multi-year records as traders bet Britain’s rapid inoculation program would leave the European Union in the dust. […] Story continues “It looks like many positives are in the price of the pound by now and the currency is looking overvalued and overbought, especially versus the euro,” said Valentin Marinov, head of G-10 currency research at Credit Agricole in London. […] To be sure, April is historically a supportive month for the pound, driven in part by the new U.K. tax year and corporate dividend repatriation of overseas income. The U.K. government, meanwhile, is insisting it’s on track to reach its target of vaccinating all adults by the end of July.
