GBP/EUR: Pound Steady vs. Euro As Brexit Headlines Dominate
  • Pound (GBP) treads water after mild gains last week
  • This week is a busy week for UK data
  • Euro (EUR) broadly trades mixed on covid concerns
  • There is no major EZ data

The Pound Euro (GBP/EUR) exchange rate is holding steady at the start of the new week . The pair finished last week at approximately the same level that it had started the week at €1.1651, just down from the 13-month high of €1.1719 reached earlier in the week. At 05:15 UTC, GBP/EUR trades flat at €1.1650.

The Pound trended higher to its best levels in over a year last week even though there were few fresh catalysts to boost sterling. The Bank of England adopted a cautiously optimistic tone in its March policy decisions and UK public sector net borrowing was also lower than forecast offering support to Sterling.

The Pound continued be supported by optimistic vaccine news. 874,000 doses, a new record, were administered on Sunday. Now 27.6 million adults in the UK, over half of all adults have had at least one dose of a covid vaccine.  The UK covid death tolls fell sharply to just 33.

However, ministers have warned that it is too early to book summer holidays abroad amid fears of holiday makers returning with vaccine resistance variants.

Looking ahead, the UK economic calendar is quiet today. However, there is plenty of high impacting numbers coming up, including UK employment figures on Tuesday, inflation data as well as manufacturing and service sector PMI numbers on Wednesday and retail sales on Friday.

The Euro has seen a mixed performance recently amid lingering concerns over the outlook of the Eurozone. Last week France announced that it will enter a new lockdown, whilst Germany is considering extending lockdown conditions amid fears of a third wave of covid hitting the old continent. The third wave comes at a time when the EU is still struggling to ramp up its vaccine programme.

There is no high impacting Eurozone data today and the economic calendar is quieter than the UK’s this week. Eurozone consumer confidence on Wednesday and manufacturing and service sector PMIs on the same are likely to be the highlights.