Yesterday the second phase of easing lock down restrictions began with the return of the rule of 6 and outdoor sports opening back up for the first time since the January lock down was in put place. This appeared to improve GBP/EUR interbank exchange rates which reached 1.1741 at the start of the week.

Boris Johnson announced Monday evening, despite other parts or the world showing their 3rd wave of infections the evidence seems clear that vaccinating the older generating has driven down infection rates and deaths throughout the UK. The prime minister also announced that the government are putting together a plan to build up longer term UK manufacturing capabilities for the coronavirus vaccination. GlaxoSmithKline Plc is set to manufacture as many as 60 million UK doses of a Covid-19 vaccine from Novavax Inc. This however is subject to approval from the Medicines and Healthcare products Regulatory Agency. There are hopes that this will ease tensions with the EU and the vaccine supply.

UK GDP

The final GDP report for this financial year is due this Wednesday with hopes that the economical damage has not been as detrimental as first thought which could strengthen the pound further.

EU Economic Recovery Could be Delayed

EU Economic Recovery Could be Delayed

The of third wave of coronavirus infections currently hitting France and Germany combined with the slow vaccine rollout shows the EU's financial recovery is looking less positive. Yesterday, France announced another 360 deaths and 9,094 new cases, Whilst the UK had 23 Deaths and 4,654 new cases.  With restrictions being tightened and extended in France there is no clear path out of the pandemic for the countries within the EU. President of the European commission, Ursula Von Der Leyen, has continuously come under fire for the vaccination roll out and the tensions between the EU & UK. The issues regarding the supply of the Covid-19 Vaccine show no real signs of easing which prompted the UK Government to put their own plan in place as mentioned in the GBP section of our report.

Lack of economic data has also made it difficult for the euro to strengthen in recent weeks. However this could change with today’s Consumer Price Index(CPI) release for Germany with things looking more positive for the countries bounce back.

EUR/GBP rates seemed to improve last week reaching 0.864 at times but the start of this week has seen rates dip to 0.851.

US Dollar Continues its Bull Run

The US dollar has been showing great strength over recent months as its vaccination drive continues to gather pace. Another factors that could be helping USD rates is President Joe Bidens $1.9 trillion stimulus program that has been put into action. This program was created to help the lasting effects of the coronavirus pandemic which saw unemployment numbers dramatically rise across the world. Eligible households are set to receive $1400 to help those most in need. Biden Is set to give a speech on Wednesday of this week to Comment on the delivery of the first stimulus checks and updates on the current Covid-19 vaccination roll out program. He will also outline the framework for the spending program. This could indicate how quickly the US can bounce back for the US economy following the pandemic.

On Monday evening President Joe Biden Announced that 90% of all adults in America will be offered their first dose of the vaccine within the next three weeks. This is a part of an initiative to roll out more vaccination locations by the 19th April 2021.  He also issued concerns over the easing of restrictions in some states as he called for renewed mask mandates.

GBP/USD rates started this week at around the 1.38 mark. The outlines given by President Biden this week and hopeful time scales for the delivery of his plans could improve USD strength in the coming weeks.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.