GBP/EUR Exchange Rate Falls Despite Falling Covid-19 Case Numbers
The Pound to Euro exchange rate dipped this morning. The pairing currently trading around €1.12.
Sterling fell as England’s Covid-19 infections continue to put pressure on the NHS, despite falling case numbers.
Paul Elliott, professor of epidemiology and public health medicine at Imperial, commented:
‘We are definitely heartened that we are now seeing what looks like a decline in the last week of our survey. But we really need to get prevalence down more quickly because the pressure on the NHS is very extreme right now.’
As a result, GBP investors are becoming more concerned that pressure on the NHS could further delay the UK’s easing of lockdown measures.
Meanwhile, the UK and the EU continue to clash over the AstraZeneca coronavirus vaccine.
The EU Health Commissioner, Stella Kyriakides, dismissed the company’s claim that it is contractually obliged to supply the UK first.
A UK Government spokesperson reassured markets that the UK’s access to vaccines would not be compromised.
The spokesperson said:
‘We are in constant contact with the vaccine manufacturers and remain confident that the supply of vaccine to the UK will not be disrupted. We have deals in place with seven vaccine developers that will ensure our supply continues to grow as we rapidly expand the rollout in the weeks ahead.’
Euro Edges Higher Despite Europe’s Coronavirus Vaccine Issues
The Euro rose against Sterling today despite concerns that the Eurozone will struggle in the months ahead because of the bloc’s falling behind on coronavirus vaccines.
Consequently, single currency investors are becoming increasingly jittery, with the prospect of a vaccine crisis weighing on sentiment in the bloc.
https://twitter.com/jbuhl35/status/1352698088109056000
In Eurozone economic data, today will see the release of the flash German Harmonised Index of Consumer Prices for January.
Any indications that the Eurozone’s largest economy is struggling with the Covid-19 epidemic would be EUR-negative.
Today will also see a speech from the European Central Bank’s (ECB) executive board member, Isabel Schnabel.
If Schnabel is downbeat in her outlook for the Eurozone’s economy, however, we would see the EUR/GBP exchange rate fall.
Could Weak German GDP Drag Down the Single Currency This Week?
Euro investors will be awaiting tomorrow’s publication of the flash German GDP data for the fourth quarter.
If this shows a significant downturn in the German economy, then we would see the single currency suffer.
Tomorrow will see the release of December’s German Unemployment Rate. This is expected to rise by 6.1%.
The GBP/EUR exchange rate will continue to be driven by the news surrounding the UK’s Covid-19 vaccination programme.
Any indications that the UK could begin to ease its lockdown measures in the months ahead would be GBP-positive.