George Vessey, UK currency strategist at Western Union Business Solutions, also shared his insight on the sterling-euro exchange rate today, commenting on how the UK’s vaccine rollout will impact it.
He said: “The UK’s drug regulator, Medicines and Healthcare Products Regulatory Agency (MHRA) showed readiness to fast-track the approval for vaccines relating to the COVID-19 variants and offered another boost to vaccine optimism. Meanwhile, the UK warned the European Union (EU) to solve the trade jitters as soon as possible after the bloc raised concerns over Britain’s trade treatment of Northern Ireland (NI).
“The UK government may able to bring forward its reopening plans for the economy as the vaccination programme is set to reach a tipping point, a development that could aid further gains in GBP. The data suggests that 35-37% of the population needs to be vaccinated before a breakthrough is seen, but promisingly, 31.4% of the total population have had at least one dose of a COVID-19 vaccine in the UK,” he added.
Mr Vessey also mentioned Brexit, saying: “Meanwhile, in response to the UK’s warning about NI, the European Parliament has declined to set a date to ratify the Brexit trade deal, which could dampen sterling sentiment. The EU term the UK’s move over NI as against the Brexit deal but the UK government rejects the criticism.
“Looking forward, global traders will keep an eye on the US stimulus updates from the Senate and how the EU and the UK manage to overcome Brexit differences as well as spread vaccine optimism.”