The pound to euro exchange rate has been struggling in recent days, according to experts. But it seems there has finally been a change in the tide thanks to increased optimism regarding the UK’s covid vaccine rollout. However, the UK is still in the midst of fighting its toughest battle against the deadly virus which has taken the lives of almost 95,000 people across the nation.
He said: “Sterling finally broke above the €1.1280 resistance level yesterday, at what felt like the millionth time of asking, to print its highest levels against the common currency since last May.
“The move comes as investors grow increasingly optimistic about the UK’s vaccine rollout, and thus more optimistic about the UK economy’s prospects.
“Now that 1.1280 has given way, a move above 1.13 could follow in relatively short order, particularly if the current optimism is maintained.
“Today’s ECB decision is unlikely to have too significant an impact on the pair.”
George Vessey, UK Currency Strategist, Western Union Business Solutions said: “The British Pound enjoyed a fresh wave of demand yesterday, largely as a result of renewed global risk appetite, which has benefited the risk-correlated pound more so over the past twelve months.
“The uptick in inflation also helped sterling as it further dampened the prospect of negative interest rates.
“Amidst the ongoing broad market optimism, pro-cyclical currencies like the EUR, commodity currencies such as CAD, AUD and NOK and risk-correlated currencies such as GBP are expected to benefit.