The GBP to EUR exchange rate was higher by 0.27% on Tuesday as the pair seeks to register a fourth-consecutive day of gains. GBPEUR was trading at 1.1144 and the highs near 1.1200 register last week are in sight.
The UK has struggled due to further government lockdowns in recent weeks, but the country’s vaccination schedule is ahead of the Eurozone’s plans for reopening. The UK has currently given out more vaccine doses than the rest of Europe combined with as 2.6million adminstered.
UK Looks to Fast-Track Reopening of the Economy
The UK is looking to speed up the re-opening of the economy with the opening of seven mass vaccination centres on Monday. The government is seeking to vaccinate up to 15 million people by February, and once these older age groups are immunized, there would be more scope to open the country.
The UK population is already facing strict lockdowns, but government is considering tightening the rules even further.
Health Secretary Matt Hancock said:
“We don’t rule out taking further action if it’s needed, but it’s your actions now that can make a difference”.
The pound sterling has been under pressure with the lockdown strategy again over Christmas but there are hopes of escaping the virus through the vaccination efforts.
The GBPEUR rate could see further gains if the UK can move ahead with plans to open the country. The logistics of the Eurozone’s vaccination plan is much more complicated and they also started the efforts later due to delivery delays.
Europe Seeing its Own Virus Troubles
With little on the economic calendar this week, the virus headlines continue to dominate traders’ expectations and Europe has been sliding further into its own crisis.
Germany reported its highest daily deaths for the pandemic with over 1,100 fatalities recorded. The country had been praised for its handling of the outbreak when it first began.
In France, the daily average for fatalities is also rising, whilst the number of new cases is near 18,000. The GBP to EUR outlook, the game-changer in the rate will be the speed of vaccinations to get the economy back open. The UK has administered 2.6 million doses already, which is more than the rest of Europe combined. The pound will benefit from this early lead and sterling still hasn’t recovered the losses seen since the referendum in 2016, so there may be value in the British currency if the post-Brexit figures meet expectations.
The country will see Gross Domestic Product (GDP) released on Friday, but economic releases are tainted by the lockdown strategy for now. The latest growth numbers will be an update for November when the second strict lockdowns were put in place.
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