• Pound (GBP) boosted the UK reopening plan
  • Decision expected on AstraZeneca vaccine to younger people
  • Euro (EUR) under pressure as covid cases keep rising
  • Eurozone unemployment data up next

The Pound Euro (GBP/EUR) exchange rate is pushing higher on Tuesday, building on gains from the previous session and last week. The pair settled +0.1% higher on Monday at €1.1760, after briefly piercing through €1.18 earlier in the session. At 05:15 UTC, GBP/EUR trades +0.15% at €1.1780.

The Pound  is finding strength at the start of the week after UK Prime Minister Boris Johnson confirmed that the UK will press ahead with the planned reopening of the economy next week. All shops, gyms, hairdressers and outdoor hospitality areas in England will re-open.

With  the covid vaccine rolling out rapidly the number of new daily infections in the UK has fallen to just 2,762. Meanwhile the UK recorded 26 covid deaths according to official data release on Monday.

The total number of first doses of the covid vaccine now stands at 36.9 million.

However, the vaccine programme could slow in the coming weeks if the UK health regulator decides to restrict the use of the AstraZeneca jab in younger people over concerns of rare blood clots. A decision to restrict the use of the vaccine could unnerve the broader population, turning them against covid vaccines.

There is no high impacting data today, so sentiment is like to keep driving movement.

The Euro was under pressure last week and is still struggling to find demand as covid cases continue to rise on the old continent. Last week France entered into its third national lockdown as covid cases were once again out of control. Investors are fretting over how the resurgence of the virus could impact on the economic recovery in the region.

On the Eurozone economic calendar, today sees the release of Eurozone unemployment data from February. This will be followed by the final service sector PMI data on Wednesday.

Unless these data points are significantly better than expected, the Euro could remain out of favour.