Good morning,

Last week saw a dip in sterling strength, following concerns of The UK’s ability to maintain its vaccine roll out plans. GBP found some relief yesterday, in line with a wave of positive sentiment surrounding UK vaccine supply.  Housing Secretary Robert Jenrick told Sky News the UK would maintain its lead on the rest of Europe, and that the government was “on course” to meet its target of offering the vaccine to all UK adults by the end of July. Over 30 million people have now received their first dose in the UK, of which over 3.5 million have also received their 2nd dose. In Boris Johnson’s speech yesterday evening, he confirmed plans for “building up our own long-term UK manufacturing capabilities” for vaccines, with goals to produce between 50-60 million UK-made vaccines. This stream of positive news allowed GBP/EUR to climb to a new 11 month high, hitting 1.1756 during yesterday’s trading session. This morning we have lost some ground, opening at 1.1720.

EUR is under continued pressure early this week, with EUR/USD struggling to break back above the 1.18 mark. Pandemic concerns are still at an all-time high in the Eurozone, with Angela Merkel recently threatening to impose federal law in Germany to ensure lockdown restrictions are tight enough. Sky high infection rates across the rest of Europe are meaning that the easing of lockdown restrictions remains a distant prospect.

In headline news, the 400m Ever Given container ship has been freed in the Suez Canal, following a massive weeklong operation. With hundreds of boats moored and awaiting passage, traffic through the canal finally resumed from 6pm GMT.

Have a great day.

James Camp, Relationship Manager.

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