EUR/GBP experienced some short-covering on Monday.
COVID-19 nerves weighed on the British pound supporting the uptick.
A mild pickup in the USD dragged on the euro, capping gains.
EUR/GBP remained buoyant in the European session. The pair trades around the 0.8910-15 off the session high.
EUR/GBP recovered further from November 2020 swing lows support, near the 0.8865-60 region tested on Friday. The selloff in the British pound versus its European counterpart is down to the imposition of fresh lockdown restrictions in the UK.
COVID-19 vaccine rollout optimism could boost GBP and limit EUR/GBP gains. Reportedly in the UK 140 people per minute on average.
Concerns over the economic fallout from the ongoing surge in new COVID-19 infections weighed on investors’ sentiment boosting demand for the safe haven US Dollar, which is pulling on the Euro. This is also preventing strong gains in EUR/GBP.
The economic calendar is quiet for the UK and the Eurozone. A speech by the Bank of England Governor Andrew Bailey could offer a fresh impetus.