After some welcome gains on Monday, yesterday saw both the GBP/EUR rate and GBP/USD rate lose traction somewhat. The latter regained most of its lost momentum bringing it back up to trading comfortably in the 1.3750’s whilst GBP/EUR is currently sitting a little lower than it started at the beginning of the week, trading at around 1.15.
Current sentiment is that the sterling strength we saw against the euro and dollar earlier on in April may be coming to an end. The pound has relied heavily on its early vaccine rollout and the success of this to drive itself up against the euro. But with the EU now set to start catching up with UK and the U.S, the pound is going to need to find fresh fodder to boost any further substantial gains, analysts predict.
In more positive news, reports show that UK-EU trade has regained some momentum following its post-Brexit decline, with the ONS reporting that exports are back up to 46.6% after they came crashing down to just 42% in January after the UK’s departure from the EU. Although this is a decline in comparison to 2020’s figures, it’s definitely paving the way for a more promising 2021.
Have a great day.
Holly Tobia-Parkyn, Relationship Manager.
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