EURGBP sellers ahead?
The UK has now vaccinated over 50% of the UK adult population. The UK stay at home order has now lifted and there are strong levels of savings amongst UK citizens which could give a sizeable boost to the UK economy.
In contrast, the eurozone is struggling to roll out vaccines and there is a growing risk of a third wave embracing the eurozone. This will mean a slower re-opening of European Countries and is likely to weaken the euro. The more serious the latest case count rise becomes, the weaker the euro will likely become.
This means that the EURGBP could see sellers on retracements over the coming week.
- Any negative developments for the UK in terms of the vaccine rollout.
- Any significant improvement in the outlook for Europe and the spread of COVID-19 will invalidate this outlook.