Pound Edges Higher as UK Covid-19 Vaccine Rollout Intensifies TORFX weekly exchange rate news

Read our round up of the latest exchange rate news and plan your currency transfers for the right time.

Information provided by TorFX – 5 year winner of the Moneyfacts Consumer ‘International Money Transfer Provider of the Year’ (2016-2020)

Click here to request a free quote on your bank-to-bank currency transfers.

This week’s rates

Weekly Highs Weekly Lows

GBP/EUR €1.1260 €1.1016

GBP/USD $1.3697 $1.3465

EUR/GBP £0.9077 £0.8880

EUR/USD $1.2346 $1.2134

The Pound to Euro exchange rate is rising at the end of the week as optimism increases over the UK’s widening vaccine rollout.

As a result, Sterling has risen on renewed hopes that the UK Government will vaccinate about 14 million people in the highest priory group by February 15.

What drove exchange rates this week?

Sterling struggled at the beginning of the week after UK Prime Minister Boris Johnson announced that England would enter its third national lockdown.

As a result, GBP investors reacted negatively to the news seeing it as further denting the nation’s already struggling economic recovery.
 

However, Covid-19 vaccine rollouts helped buoy market confidence, with the UK Government planning to vaccinate the majority of those in a vulnerable category by mid-February.
 

UK Cabinet Secretary Michael Gove, however, was sceptical, saying that it was more likely that the nationwide lockdown would last until March.
 

Meanwhile, the Euro struggled as a mixture of disappointing Eurozone economic data and rising Covid-19 cases throughout Europe dampened demand for the single currency.
 

Midweek saw the publication of the Eurozone’s Composite PMI for December, which measures manufacturing and service sector activity, undershoot forecasts and remain in a state of contraction, weighing on the Euro.

More lacklustre Eurozone data releases at the end of the week put more pressure on EUR exchange rates, with retail sales and a negative inflation rate causing particular concern for investors.
 

The US Dollar (USD) fell this week after the announcement that the Democrats had gained control of the US Senate.
 

As a result, global markets are optimistic that the Biden administration will announce a more robust stimulus package to boost the world’s largest economy, in turn increasing risk appetite and weighing on safe-haven USD demand.

What could move exchange rates next week?

Next week, Pound traders will be eyeing several speeches from Bank of England (BoE) policymakers for insights into hints at further monetary easing in response to England’s latest lockdown.
 

Also, any signs that the UK’s Covid-19 vaccination programme being delayed would push forward the UK lockdown and potentially weaken confidence in Sterling.
 

EUR traders will be monitoring the Europe’s coronavirus situation.
 

If Covid-19 infections continue to rise, we could see the single currency fall as the outlook for the Eurozone’s economy darkens.
 

Euro investors will also focus on Germany’s budget announcement and accompanying GDP figures, and hoping for the German government to increase its fiscal spending to support the Eurozone economy.

The US Dollar will continue to be driven largely by global risk sentiment.
 

If there are any further announcements concerning a US stimulus package next week, we could see demand for the safe-haven ‘Greenback’ continue to fall.

If you need to move money to or from Spain, TorFX can help you save time and money on your currency transfers. They've been offering highly competitive exchange rates, no transfer fees and award-winning service since 2004. Click here to access their live exchange rates and find out how much you could save today.