GBP/USD: Pound High vs Dollar As No Deal Brexit Risk Fades
  • Pound (GBP) rallies as Pfizer vaccine could be approved in UK by 7th December
  • Brexit nerves still linger as Barnier comes to London for further talks
  • Euro (EUR) looks to German CPI data data today
  • ECB Christine Lagarde due to speak

The Pound Euro (GBP/EUR) exchange rate is advancing at the start of the new week, snapping a four day losing streak. The pair settled on Friday at €1.1127, near the low of the week after tumbling 0.7% in the session and 0.7% across the week as a whole. At 05:15 UTC, GBP/EUR trades +0.2% at €1.1148

News over the weekend that the UK’s medical regulator, the Medicines and Healthcare Products Regulatory Agency (MHRA) is set to approve the Pfizer covid vaccine from the 7th December is lifting sentiment at the start of the week. The news comes amid swirling rumours that the government is also pushing MHRA to approve the AstraZeneca Oxford covid vaccine.

Vaccine news is overshadowing Brexit uncertainties. With the Brexit clock ticking and still no agreement achieved nerves are setting in. Brexit fears sent the Pound lower across the previous week.

EU Chief negotiator Michel Barnier is due in London for further talks and a final push. However, key issues such as trade fisheries, governance and the fair playing field remain as hurdles with seemingly little progress being made.

There is no high impacting UK data due for release today, instead sentiment is likely to keep driving the price movement.

The Euro trades lower versus the Pound, however, is pushing higher versus the US Dollar as investors await German inflation data. German inflation is expected to remain subdued in deflation territory similar to last month.

The data comes after Germany’s national lockdown was extended for another month from 20th November to 20th December in an attempt to stem the spread of the virus. German’s economy minister Peter Altmaier warned that covid cases are still too high in most regions.

European Central Bank President Christine Lagarde is also due to speak later.