- EUR/GBP rises tentatively higher on Friday but remains close to multi-month lows.
- The UK’s relatively quick vaccination efforts in January and EU vaccine delivery delays have weighed on the pair.
EUR/GBP is advancing on Friday trading around 0.8850 after failing to break below the multi month low of 0.8820 earlier in the week.
The price is expected to remain capped by a descending trend line, while an even longer-term downtrend continues to act as a floor for the price action. As long as EUR/GBP remains within this downwards trend channel, its bearish bias remains in place.
The UK’s Covid-19 R estimate range was revised lower to 0.7-1.1 from 0.8-1.0. Furthermore the vaccination programme continues to accelerate and is rapid compared to international peers supporting GBP across the week
Meanwhile a tussle between the EU and the UK over vaccines could mean that the EU will prevent Pfizer’s factory in Belgium from fulfilling its contractual agreement with the UK .Should this happen the UK’s comparative vaccination lead over the EU could be impacted supporting EUR/GBP.
In additional pandemic news Moderna is now also delaying deliveries to Italy, France and Poland. But the European Medical Agency has approved AstraZeneca’s vaccine.
German, French and Spanish preliminary GDP numbers for Q4 2020 beat forecasts underpinning the euro versus the pound and the US Dollar. German employment data for January was also ahead of expectations.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
