The Pound to Euro (GBP/EUR) exchange rate has been mixed for much of the day as the Pound is supported by the rapid recovery of the UK’s economy from the coronavirus pandemic.
At the time of writing the GBP/EUR exchange rate is trading at around 1.1518 as the Euro weakens following the US Dollar’s resurgence.
Pound (GBP) Supported by UK Economic Reopening
The Pound has found modest support for much of today’s session as investors remain increasingly optimistic surrounding the UK’s economic recovery from the coronavirus pandemic.
It comes as the NHS Covid-19 vaccine booking system in England has now extended its invitation to book for a vaccine to those who are aged 42. It is the second time the system has been updated in a week, with the first extension coming just yesterday.
The latest figures from the Office for National Statistics (ONS) have today revealed that deaths involving coronavirus among all people have fallen by up to 97% since the peak of the second wave in the UK.
Investors are optimistic surrounding the UK’s economic reopening and recovery from the pandemic as the third stage of lockdown easing is just weeks away.
Euro (EUR) Mixed on US Dollar Rebound
The Euro has been mixed for much of the day as the US Dollar sees a rebound as markets await the latest Federal Reserve interest rate decision tomorrow.
The US Dollar has been on the rise today, as US Treasury yields recovered and a cautious market mood drew investors to the safe-haven currency.
However, limiting the Euro’s losses today is the acceleration of the Eurozone’s coronavirus vaccine rollout which aims to offer 70% of all adults a dose of the vaccine by the end of July.
It comes as the European Commission launch legal action against AstraZeneca and it’s contract to deliver doses of the vaccine to the bloc.
Pound Euro Exchange Rate Outlook: Eurozone GDP in Focus
Looking towards the end of the week, Euro traders will be keeping an eye on the latest Eurozone GDP figures which are expected to remain in contraction as the bloc dealt with a third wave of the coronavirus.
Due to a lack of any notable date from the UK GBP investors will remain focused on any coronavirus developments in the coming days.
The GBP/EUR exchange rate could also be driven by the Federal Reserve’s interest rate decision tomorrow, if the Fed remain dovish then the Euro could head higher.