Pound set to plummet to biggest loss in seven months as fears grow over AstraZeneca supply
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At 7.49am, sterling was down 0.1 percent against the euro at 86.81 pence.
The currency has fallen 2.1 percent in total this week, leaving it on course for its biggest weekly fall in seven months.
Against the US dollar, the pound plunged 0.3 percent to $1.3697, set for its biggest weekly fall since December 2020.
The pound enjoyed its best quarter against the euro since 2015 during the first three months of this year.
This upward trend was driven by Britain’s rapid rollout of Covid vaccines, as well as fading of negative rates expectations for the country.
But that has reversed sharply this week, with Friday marking the fourth successive day the pound has fallen against the euro.
Market participants have said this has been amplified by a squeeze of euro-pound short positions.
Marshall Gittler, head of investment research at BDSwiss, wrote in a note to clients: “The selling of sterling may have been connected to buying of euros.
“It looks like perhaps people are getting more optimistic about the rollout of a vaccine in the EU and less optimistic about the comparable move in the UK.”
This is a breaking story. More to follow…
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