The Euro Pound (EUR/GBP) exchange rate is edging higher this morning following the news that Europe will reopen its borders to those who have been fully vaccinated.
At the time of writing the EUR/GBP pairing are trading around the £0.8632 as concerns over the Indian variant of the virus cause Sterling investors to remain cautious.
Euro (EUR) Supported by EU Border Restrictions Easing
The Euro has found itself edging higher against the Pound since markets opened this morning.
News that the European Union (EU) countries would ease coronavirus travel restrictions on non-EU visitors as long as they are fully vaccinated was welcomed by investors.
It is also though that unvaccinated travellers can also avoid quarantining in the EU if they come from countries that have controlled the coronavirus outbreak well, meaning a two-week new-case rate of less than 75 per 100,000 people.
The EU’s ramped up vaccine rollout continues to support the single currency, with all adult is the bloc to be offered a dose of the vaccine by the end of July.
Pound (GBP) Stumbles on Indian Variant Coronavirus Concerns
The Pound has stumbled against the Euro this morning as concerns over the Indian variant of the coronavirus limit Sterling sentiment.
Coronavirus cases are rapidly rising in areas where the Indian variant of the virus is prevalent, with almost 3,000 cases of the Indian variant having been identified in the UK so far.
Prof Van-Tam spoke to a Downing Street press conference yesterday evening regarding the Indian variant and the UK’s vaccine rollout:
‘I pitch this personally as a straight race between the transmissibility of this new variant … and vaccine delivery.’
‘The NHS is doing everything it can to turbo-boost that, and that is the challenge that’s ahead of us in the next two to three to four weeks, to make sure that we outrun the virus through really vigorous pull-through on vaccine delivery.’
Investors are concerned that the Indian variant of the virus could lead to a further wave of the virus which could derail the UK’s roadmap out of lockdown.
Euro Pound Exchange Rate Outlook: UK Retail Sales in Focus
For Pound investors, tomorrow will see the release of the latest retail sales figures from the UK for April.
The figures are forecast to show a surge of 37% as much of the high street reopened during April as lockdown restrictions were eased.
For Euro traders, tomorrow’s flash PMI data from the Eurozone is expected to show a sustained growth in the services sector as much of the bloc reopens from coronavirus restrictions.
The EUR/GBP exchange rate will continue to be driven by any coronavirus developments heading into the weekend as investors keep an eye on the Indian variant of the virus.