News & analysis

FX market price action focused heavily on vaccine developments and reflationary dynamics in February. Given the important role vaccine distribution plays in FX price action, we launched a monthly vaccine distribution chartbook as a means to monitor major vaccine developments around the globe. The importance of vaccines on FX markets has been best highlighted by sterling’s rally in February. The pound rose 1.62% against the dollar and 2.24% against the euro over the course of the month, with GBPUSD trading firmly above the $1.40 handle and GBPEUR hitting fresh one-year highs prior to the month-end sell-off. Improved optimism around the pound was largely driven by the UK’s rapid vaccination programme, which allowed Prime Minister Johnson to announce a roadmap out of lockdown much earlier than peers. The roadmap compounded the Bank of England’s optimistic outlook for the UK recovery too after they struck hawkish tones in their February meeting.

Download the full report

 

 

DISCLAIMER: This information has been prepared by Monex Canada Inc., an execution-only service provider. The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. No opinion given in the material constitutes a recommendation by Monex Canada Inc., or the author that any particular transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, it is not subject to any prohibition on dealing ahead of the dissemination of investment research and as such is considered to be a marketing communication.