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Euro Pound Exchange Rate Sinks as UK Takes Big Step to Ease Some Lockdown Restrictions

EUR/GBP Exchange Rate Falls as UK Now Allows Up To Six People to Meet Outdoors

The Euro Pound exchange rate fell today as the UK has taken its first cautious step in easing lockdown restrictions, with groups of up to six people now legally able to meet up outdoors. The pairing is currently trading around £0.85.

Prime Minister Boris Johnson warned the nation that ‘we must be cautious’, however, as Covid-19 cases continue to rise throughout much of the European Union (EU).

Johnson said:

‘We must remain cautious with cases rising across Europe and new variants threatening our vaccine rollout.’

UK markets are now more hopeful for the nation’s economic recovery, however, as England takes cautious steps towards reopening crucial sectors of the economy in the months ahead.

In UK Covid-19 news, 45.1% of adults have now received at least one dose of the Covid-19 vaccine, while daily cases are down by -1,450 compared to last week.

Hospitalisations have also fallen, with cases now at 4,560, down by -1,576.

As a result, Pound (GBP) traders are becoming more hopeful about the UK’s Covid-19 situation and the reopening of the economy in the next few months.

Euro (EUR) Falls as the EU Faces Third-Wave of Covid-19 Infections

The Euro (EUR) failed to rise against the Pound today due to a general lack of notable European economic data running up to Easter.

Added to this, the European Union’s (EU) Covid-19 crisis – with rising numbers of the virus in two of the bloc’s largest economies, France and Germany – has dampened confidence in the Eurozone’s economic recovery.

Paris-area doctors in Le Journal du Dimanche highlighted concerns of hospitals being overwhelmed in Paris, commenting:

‘We already know that our capacity to offer care will be overwhelmed. We will be obliged to triage patients in order to save as many lives as possible. This triage will concern all patients, with and without COVID, in particular for adult patients’ access to critical care.’

However, as Eurozone economies struggle with the third-wave of Covid-19, EUR traders are becoming more cautious.

EUR/GBP Exchange Rate Outlook: Could Weak Eurozone Industrial and Consumer Morale Drag on the Single Currency?

Euro (EUR) traders will be awaiting tomorrow’s release of the latest Eurozone Industrial and Consumer Confidence figures for March.

Any signs of deterioration in consumer or industrial morale would, however, be EUR-negative.

The Pound Euro exchange rate will likely continue to rise this week as UK Covid-19 infection rates continue to fall and the nation takes cautious steps to reopen its economy in the coming months.