- Pound (GBP) extends losses surging covid case
- BoE’s Andrew Bailey to speak later
- Euro (EUR) failed to be buoyed by lower EZ unemployment
- A quiet start on the economic calendar
The Pound Euro (GBP/EUR) exchange rate is moving lower, extending last week’s losses. The pair lost -0.8% across the previous week to settle at €1.1099. At 05:15 UTC, GBP/EUR trades -0.1% at €1.1084.
Covid data and vaccine developments remain the key drivers of the British Pound as the third national lockdown continues. Despite the tight restrictions the UK still managed to record 54,940 new covid cases on Sunday. This was however a decline from Saturday. Meanwhile the death toll topped 560, the third highest number of deaths recorded on a Sunday across the entire pandemic. Health Secretary Matt Hancock warned that lockdown restrictions could get tougher still if numbers continued to rise.
The gloomy numbers are overshadowing encouraging vaccine roll out news. According to Matt Hancock, 200,000 people a day are receiving the covid vaccine meaning that the UK is on course to vaccinate the most vulnerable members of society by mid-February. Some 2 million people have now been vaccinated. The quicker vulnerable people are vaccinated the sooner the UK economy can reopen.
There is no high impacting UK data due to be released. A speech by Bank of England Governor Andrew Bailey could attract some attention.
The Euro failed to find strength at the end of last week despite signs of improvement in the Eurozone unemployment rate. The rate ticked lower from 8.4% to 8.3% but failed to inject any sense of optimism into the region’s economic outlook. Delving deeper into the report the data showed a concerningly sharp rise in unemployment among young people.
Data wise, it is a quiet start to the week with just Eurozone industrial production in focus on Wednesday ahead of Thursday’s German GDP reading.