The GBP/USD pair witnessed some selling during the early European session and dropped to fresh multi-week lows, around the 1.3670 region in the last hour. The pair failed to capitalize on its intraday uptick to the 1.3705-10 region, instead met with some fresh supply and now seems set to prolong its short-term bearish trajectory. The US dollar stood tall near four-month tops amid the upbeat US economic outlook and got an additional boost from a modest uptick in the US Treasury bond yields. This was seen as one of the key factor exerting some downward pressure on the GBP/USD pair.
The British pound was pressured by further pressured by tensions over COVID-19 vaccine supplies. It is worth mentioning that the European Commission reportedly has threatened to ban exports of Oxford-AstraZeneca vaccines to countries that have higher vaccination rates, including Britain. This raised fears that a significant shortage in vaccine supplies could derail the UK government's plan to exit the current lockdown.
