GBP/EUR Forecast: Pound to Euro Exchange Rate Pushes Higher as Eurozone Coronavirus Concerns Increase

March 17, 2021 – Written by John Cameron

The Pound to Euro exchange rate is gaining this morning as the row over the safety of the AstraZeneca vaccine continues, with many Eurozone countries now suspending the use of the vaccine.

At the time of writing the GBP/EUR exchange rate is currently trading at around 1.1702, hitting its highest level in a year.

Pound Sterling (GBP) Exchange Rate Pushes Higher as Vaccine Rollout Tentatively Ahead of Schedule

The Pound is continuing to test the €1.17 level against the Euro this morning as multiple experts step forward to dismiss concerns over the AstraZeneca vaccine in the UK.

The UK is pushing ahead with its vaccine rollout, with NHS sources noting that 4 million jabs are to be given this week. A figure which if sustained would put the NHS rollout two weeks ahead of schedule.

Over concerns of the safety of the vaccine plaguing multiple EU countries, experts and MPs alike are coming together to dispel these concerns, Health Secretary Matt Hancock said this morning that:

’The Oxford/AstraZeneca jab is safe, we know that over 10 million people have had it in this country, and that’s what the British regulator says but also the World Health Organisation and even the European regulator.
’We keep the effects of these vaccines under review all the time and we know that the Oxford/AstraZeneca vaccine is saving lives in the UK right now so if you get the call, get the jab.

Pound investors are eagerly awaiting the Bank of England’s (BoE) interest rate decision, with an optimistic stance expected from the bank following Governor Andrew Bailey’s comments at the start of the week.

Euro (EUR) Exchange Rate Struggles as Eurozone AstraZeneca Suspension Could Cause More Damage than Good

The Euro has had little support this morning after a host of different Eurozone countries suspend the use of the AstraZeneca vaccine.

The move which could see the Eurozone’s vaccine rollout become more delayed than it already is has caused concern among investors and markets.

The division over the use of the vaccine comes as many countries across the bloc struggle with a surge in coronavirus cases, and the idea that a third wave of the virus could be on the way is worrying.

In Germany alone cases of coronavirus have risen by 20% in the last week, an expert from the RKI public health agency reported earlier in the week.

The Eurozone’s vaccine problems don’t stop there, as a row has broken out between EU member states over coronavirus vaccine allocation.

Reported by the Financial Times, it’s said that:

‘Leaders of a group of European states wrote to the presidents of the European Council and European Commission complaining of ‘huge disparities.’ The letter, which was signed by Austria, Bulgaria, Croatia, the Czech Republic, Latvia and Slovenia, calls for a debate at leaders’ level.’

Data released from the Eurozone showed that inflation remained steady as expected, though it wasn’t enough to bolster Euro sentiment.

GBP/EUR Exchange Rate Forecast: Markets Await BoE Interest Rate Decision

For Pound investors the BoE’s interest rate decision tomorrow will be in focus, interest rates are expected to remain at 0.1%. An optimistic stance from the bank regarding the UK’s economic recovery would push Sterling higher.

For Euro investors, a speech from European Central Bank (ECB) President Lagarde tomorrow morning could cause concern for EUR.

With Lagarde expected to comment on the shortcomings of the Eurozone vaccine rollout and a potential third wave of the virus wreaking havoc across the bloc the single currency could head lower.

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