GBP/EUR Forecast: Pound to Euro Exchange Rate Edges Lower on Ramped up Eurozone Vaccine Rollout

April 19, 2021 - Written by John Cameron

STORY LINK GBP/EUR Forecast: Pound to Euro Exchange Rate Edges Lower on Ramped up Eurozone Vaccine Rollout

The Pound Euro (GBP/EUR) exchange rate has edged lower this morning as the Eurozone continues to ramp up its vaccine rollout to combat the third wave of the coronavirus pandemic.

At the time of writing the GBP/EUR exchange rate 1.1542 as mutant coronavirus cases creep back into the UK.

Pound Sterling (GBP) Exchange Rate Falls on Indian Coronavirus Mutation

The Pound has edge lower this morning after the new Indian mutation of the coronavirus is ‘likely to become a concern.’

Prime Minister Boris Johnson has cancelled his trade trip to India as coronavirus cases soar across the country.

Danny Altmann, professor of immunology at Imperial College London commented on the new mutation saying:

‘At the moment, this particular variant (from India) is called a variant under investigation, not a variant of concern because it hasn’t been escalated to that level yet. My assumption from everything I’ve seen is that it will become a variant of concern. When it becomes a variant of concern, I’d be quite surprised if India wasn’t on the red list.’

Euro (EUR) Exchange Rate Edges Higher as Eurozone Vaccine Rollout Ramped up

The Euro is being supported this morning as the Eurozone’s vaccine rollout is ramped up, and the bloc secures a further 100 million doses from Pfizer, however the upbeat market mood is limiting the Euro against the Pound

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The CEO of Pfizer Albert Bourla spoke to four different European newspapers at the end of last week, saying he was confident that life in Europe could return to normal by Autumn.

Bourla said that ‘COVID-19 will become like flu. We will be having our vaccinations and we will be living our full lives.’
He also went on to say:

‘If you see the data for Europe, I think it’s not behind other major complex countries. Supplying and administering doses for 447 million people, the EU population in 27 member states, is a monumental task. What I see from our part, it’s working like a well-oiled machine.’

The Euro is also being supported following a further pullback in the US Dollar this morning as a risk-on mood causes the safe-haven US Dollar to fall.

GBP/EUR Exchange Rate Forecast: UK Employment Change Data in Focus

For Pound investors, tomorrow will see the release of the latest employment change data from the UK for March, which if meet forecasts could push the Pound higher as the UK reopens from the national lockdown imposed at the start of the year.

Wednesday will see the release of the latest inflation data from the UK which could give an insight into how the UK’s economic is performing now that restrictions have been eased, with figures expected to have risen 0.8% in March, up from February’s 0.4%.

For Euro traders, the global market mood will continue to drive movement along with any further coronavirus developments from the Eurozone which will hope to drive the Euro higher.

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