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GBP/EUR Exchange Rate Forecast: Pound Euro Mixed on Coronavirus Variant Concerns

May 17, 2021 - Written by John Cameron

The Pound Euro (GBP/EUR) exchange rate is mixed this morning as concerns over the Indian variant of the coronavirus in the UK limit any gains from Sterling.

At the time of writing the GBP/EUR pairing are trading around the 1.1611 level as the next stage of lockdown easing comes in to effect across much of the UK.

Pound (GBP) Exchange Rate Mixed on UK Lockdown Easing

The Pound has found itself mixed against the Euro this morning as the latest lockdown easing across much of the UK is met with some concerning views.

The latest easing in England has seen indoor hospitality reopen and groups of up to 30 people allowed to meet outdoors.

However, concerns that the Indian variant of the virus could hamper England’s full exit out of lockdown measures on the 21st June has caused investors to remain cautious.

Professor Adam Finn, from the Joint Committee on Vaccination and Immunisation (JCVI) spoke to UK television this morning saying:

‘I really hope that these current concerns around this variant evaporate, that everything goes to plan, but I think we just have to accept the possibility that we're in for another big wave and that we will have to change what we're doing.’

‘That's not good news for people in businesses I know, but it's the reality... We're faced with real uncertainty here.’

Euro (EUR) Exchange Rate Supported by Mixed US Dollar

The Euro has found support against the Pound this morning as concerns over the Indian variant limit any GBP gains.

More so, a mixed US Dollar has allowed the Euro to head higher against many of its major rivals today, however a lack of any notable data from the Eurozone could leave the single currency open to losses throughout the day.

A ramped up vaccine rollout across the Eurozone has allowed the Euro to head higher as the programme looks on course to be completed by the summer.

Speaking to French television, Nicolas Schmit, the European Union's commissioner for jobs and social rights commented on the success of the rollout:

‘The EU has done a good job on the vaccines. Vaccination is of the responsibility of member states the Commission is not organising the vaccination in the member states. I think what has been done to provide the vaccines has been quite a success.’

GBP to EUR Exchange Rate Outlook: UK Employment Data in Focus

For Pound investors, tomorrow will see the latest employment data from the UK for March which is forecast to show that unemployment edged up to 5% as much of the country remained under strict lockdown measures.

Tomorrow will also see the release of the latest preliminary employment change data from the Eurozone for Q1 which is forecast to have risen to 0.5% as much of the bloc began to leave the worst of lockdown restrictions.

The GBP/EUR exchange rate will continue to be driven by any further coronavirus developments in the coming days as the UK begins the next phase of reopening.

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