The EURGBP exchange rate dropped to 0.8710 in early trading on Monday as the EUR to GBP rate awaits data from the Eurozone. The pound is seeing strength after the news that 15 million vaccines had been administered a day ahead of schedule.
EURGBP is now edging closer to the support level at 0.8685 and there is enough data this week to see that level hit if the pound benefits.
European Trade and Industrials Lead on Monday
Monday sees some mid-level data with the Eurozone trade balance and industrial production released. The trade balance is expected to drop as the current lockdowns slow trade, but the surplus is still intact as exporters have still been able to move around.
Industrial production is expected to contract for the month with a reading of -0.3% compared to -0.6% last month. Manufacturing and industrials are being weighed down by the virus and the restrictions imposed.
The key European data for the week is Tuesday’s GDP growth figures and this will move the EURGBP rate as traders get a chance to compare the European performance to last week’s UK growth numbers. The numbers will be important as the UK powers ahead with its vaccine programme. The government has announced that 25% of adults have now received a first dose and this could see the economy back open as planned in March, while the Eurozone may see its own reopening happening later as it tries to catch up.
Tuesday also sees the release of ZEW economic sentiment index readings for the Eurozone and German economies. The indices haven’t had their usual effect on markets as traders look at the big picture and ignore any gloom from businesses and consumers while still in lockdowns.
Verhofstadt Calls Euro Vaccines a ‘Fiasco’
The former Belgium Prime Minister, Guy Verhofstadt, who was a vocal Brexit critic, has called the EU’s vaccination programme a “fiasco”.
Speaking on Twitter, the politician said:
“Pro-Europeans should be the first to be critical when things go wrong. On vaccines they certainly have.”
He also gave his thoughts on Ursula Von Der Leyen’s ” vaccine fiasco and how to move forward and fix it.”
The comments come as critics have lashed out at the EU’s botched attempts to create a soild vaccination campaign for the Eurozone and the bloc has failed in its first attempt to show that unity offers anything in a crisis. Arguments have raged between the EU Commission and drug makers, and EU countries are doing their own thing with Hungary courting China for vaccines. The EU also threatened to block European shots to the UK and caused controversy over threats related to Northern Ireland. The criticism could continue if the UK reopens and sees a stronger economic performance.
The EURGBP pair has the momentum to test the lower support level this week and the pressure is on the single currency as data awaits. Feel free to get in touch using the form below to discuss the EURGBP exchange rate in further detail, and how your upcoming currency exchange could be impacted by it.