Euro and sterling remained firm on Wednesday. Why’s that?
On Wednesday, the euro and sterling remained firm against the US dollar, despite ongoing concerns about the global economic outlook. The euro rose to a two-week high against the dollar, while sterling also gained ground, as investors continued to focus on the positive news coming out of Europe. One of the main reasons for the strength of the euro and sterling is the ongoing progress in the rollout of Covid-19 vaccines across the continent. The European Union has been ramping up its vaccination efforts in recent weeks, with several countries now reporting that they have vaccinated a significant proportion of their populations. This has helped to boost confidence in the European economy, as investors believe that the rollout of vaccines will help to accelerate the recovery from the pandemic. As a result, the euro has been gaining ground against the dollar, as investors look to take advantage of the positive sentiment. Another factor that has been supporting the euro and sterling is the ongoing weakness of the US dollar. The dollar has been under pressure in recent weeks, as investors have become increasingly concerned about the outlook for the US economy. With the US Federal Reserve continuing to pump trillions of dollars into the economy, there are fears that inflation could rise sharply in the coming months. This has led to a sell-off in the dollar, as investors look to move their money into other currencies that are seen as more stable. Overall, the outlook for the euro and sterling remains positive, as investors continue to focus on the positive news coming out of Europe. With the rollout of vaccines continuing to gather pace, and the European economy showing signs of recovery, it seems likely that the euro and sterling will continue to remain firm in the coming weeks and months.