GBP/USD: A hit in supplies of vaccines to knock down the cable

GBP/USD has been struggling to recover despite falling US bond yields. The cable is set to turn south amid concerns that a slowdown in the supply of doses will grind Britain's vaccination campaign to a halt, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“While some 38% of Brits have received one jab, only a few have been administered the second dose, and a delay may derail the exit from the current lockdown. In addition, the clashes with the EU are unhelpful either.” 

“Returns on Uncle Sam's ten-year debt has dropped below the round 1.70% level but may resume its gains later on. Moves in the dollar have been directly correlated with this global benchmark.”

“A somewhat forgotten factor moving the dollar has also returned to the scene – Sino-American relations. High-level talks between the world's largest economies resulted in mutual accusations and seemingly little progress to resolve outstanding issues on trade, Taiwan, Hong-Kong, Xinjiang, and other topics. The greenback has received some flows.”

“Some support awaits at 1.39, which is the daily trough, followed by 1.3850, a swing low from earlier this week.”

“Some resistance is at 1.3930, which capped cable last week, and then by 1.40, the psychological barrier and a double-top.”