GBP/EUR Forecast: Pound to Euro Exchange Rate at One Year High as UK Lockdown Eased

March 29, 2021 - Written by John Cameron

STORY LINK GBP/EUR Forecast: Pound to Euro Exchange Rate at One Year High as UK Lockdown Eased

The Pound to Euro exchange rate is at a one year high this morning as the UK reaches its next stage of lockdown easing this morning.

At the time of writing, the Pound to Euro pairing are currently trading at around 1.1741 as the UK is set to receive doses of the Moderna vaccine from April, the third vaccine ordered by the country.

Pound Sterling (GBP) Exchange Rate Supported by UK Lockdown Easing

The Pound has found support this morning from the second stage of the UK’s lockdown easing which came into effect this morning.

As the ‘stay at home’ rule is lifted and those in England can now enjoy outdoor sports and meet in groups of six outdoors (including private gardens) a sense of normality is returning to the nation.

Speaking this morning, Prime Minister Boris Johnson reminded the public to remain cautious as restrictions are eased:

‘I know how much people have missed the camaraderie and competition of organised sport, and how difficult it has been to restrict physical activities – especially for children.’

’ We must remain cautious, with cases rising across Europe and new variants threatening our vaccine rollout. Despite today’s easements, everyone must continue to stick to the rules, remember hands, face, space, and come forward for a vaccine when called.’

It comes as Culture Secretary Oliver Dowden confirmed that the Moderna vaccine made in the US would start to be delivered in April.

Speaking on Sunday Dowden went on to comment on the rollout of the vaccine saying:

’ We always knew that there would be ups and downs in terms of the vaccine rollout. We were surging ahead a couple of weeks ago, [and] there has been a bit of a slowdown now, but that doesn’t undermine our confidence that we will be able to deliver for that crucial group, the over-50s by the middle of April.’

Euro (EUR) Exchange Rate Dips as Third Wave of Coronavirus Hits the Eurozone

The Euro has dipped against the Pound this morning as a third wave of the coronavirus pandemic continues battering Eurozone’s shores.

It comes as France’s finance minister Bruno Le Marie this morning said that health conditions in the country were worsening as the third wave causes havoc.

Speaking to a French radio station Le Maire commented that:

‘Today sending the signal that we would reopen some businesses while the situation deteriorates, it’s not in the country’s interest.’

Even more so, the Chancellor of Germany Angela Merkel blamed the countries difficulties in combatting the virus on ‘a tendency toward perfectionism.’

In a television interview broadcast yesterday evening Merkel went on to say that:

‘We have a difficult situation. But look at our neighbours. With the exception of Denmark they are all grappling with the same problems, in part from a much more difficult position.’

GBP/EUR Exchange Rate Forecast: Eurozone Consumer Confidence in Focus

For Euro traders tomorrow brings the release of the Eurozone’s consumer confidence final figure for March which is forecast to rise 4 points to -10.8.

Whilst the reading would be the highest since February 2020, consumer confidence is expected to plummet heading into April as renewed lockdowns across the bloc cause the Euro to stutter.

German inflation is also to be released tomorrow, with forecasts predicting a preliminary 1.7% rise, EUR could be supported by the reading.

For Pound investors, Wednesday will see the release of the UK’s final Q4 GDP growth reading which is expected to confirm a modest growth of 1%, allowing the UK to avoid a double-dip recession which would be GBP-positive.

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