April 16, 2021 - Written by John Cameron
STORY LINK GBP/EUR Forecast: Pound to Euro Exchange Rate Gains as Eurozone Inflation Meets Forecasts
The Pound Euro (GBP/EUR) exchange rate has been mixed this morning as the Pound looks to rebound and push back above €1.15 heading into the weekend.
At the time of writing the GBP/EUR exchange rate is trading at around 1.1497 as the latest Eurozone inflation data met forecasts.
Pound Sterling (GBP) Gains Traction over Summer Travel Hopes
The Pound is gaining traction against the Euro this morning as hopes that the UK’s travel sector can reopen for summer seem more realistic following news that Portugal has lifted its UK flight ban.
Although holidays for those from the UK are banned until at least May 17, the reopening hopes to pave the way for other countries to follow.
The boss of TUI, Friedrich Joussen is optimistic that the travel sector can be reopened in time for summer, saying he expects 75% of its normal schedule to go ahead.
Speaking to the BBC last night Mr Joussen said:
‘We are still confident that we will have a decent summer. All medical advice we are getting as a company says that existing vaccines are working with existing variants. Now they might be less efficient sometimes, but still it's much better than not being vaccinated.’
Though local lockdown warnings have been issued to tackle different variants of the virus, investors remain optimistic that the UK’s economic reopening will go ahead on time.
Euro (EUR) Falters as Eurozone Inflation Meets Forecasts
The Euro fell against the Pound this morning as the latest core Eurozone inflation was in line with forecasts at 0.9%, slowing from 1.1% the previous month.
Despite the ramped up vaccine rollout across the Eurozone, the reintroduction of stricter lockdowns across the bloc has still caused concern for many investors as the economic recovery from the coronavirus in Europe looks to be delayed.
The EU yesterday hit 100 million doses given as the European Commission announced an extension in the bloc’s contract with Pfizer which will see another 50 million doses delivered to the Eurozone.
Furthermore, a slight rebound in the US Dollar has seen the Euro hold at $1.19 heading into the weekend as a risk-off mood helps USD to recover.
GBP/EUR Exchange Rate Forecast: Coronavirus Developments in Focus
Over the weekend, for Pound investors any coronavirus developments will continue to drive movement in exchange rates.
Though looking to next week, key employment and inflation data from the UK is expected to cause movement in the currency, as the data is expected to give an insight into how the economy is recovering from the coronavirus pandemic.
For Euro traders, next week will see the latest interest rate decision from the European Central Bank, which is expected to remain at 0%, to help tackle the damage inflicted by the pandemic, and the current third wave.
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TAGS: Pound Euro Forecasts