The Pound to Euro exchange rate was lacklustre this morning as UK unemployment data did little to support the Pound.
At the time of writing the pair is currently trading around 1.1256.
Pound (GBP) Muted as UK Unemployment Data Rate Narrowly Misses Forecasts
The Pound remained muted this morning as the UK’s unemployment rate data release slightly missed forecasts.
The unemployment rate in the UK edged to 5 percent in the three months to November of 2020 from 4.9 percent in the previous period and slightly below forecasts of 5.1 percent, which did little to support Sterling.
However there were signs that the easing of lockdown restrictions in December led to a pick-up in the UK job market, with 52,000 staff added to payroll between November and December.
In coronavirus news, Prime Minister Boris Johnson is expected to approve the use of hotels to quarantine those arriving to the UK from countries with more contagious strains of the virus.
The Prime Minister says that the use of such quarantine hotels could help to combat ‘reinfection from abroad.’
With Health Secretary Matt Hancock reiterating that the NHS is ‘stretched to the limit’ in a press conference yesterday evening, markets are increasingly jittery about when lockdown restrictions will come to an end.
Euro (EUR) Struggles as Coronavirus Infections Rise
The Euro found itself continuing to struggling this morning following on from worries about increasing coronavirus infections across the bloc.
Despite numerous lockdowns and restrictions across the Eurozone, infections, deaths and hospitalisations still rise, as Germany and France consider tightening restrictions.
The European Union has threatened to block exports of the AstraZeneca vaccine outside of the bloc after the pharmaceutical company announced that deliveries were to be reduced in the coming weeks.
Yesterday saw the President of the European Central Bank (ECB), Christine Lagarde, say that the Eurozone’s economy had been delayed due to the pandemic, but not derailed.
GBP/EUR Outlook: German Consumer Confidence to Boost Euro?
Pound to Euro exchange rate movement will continue to be driven by any coronavirus developments in the coming days.
Any signs that the government will be extending lockdown measures far past the middle of February or the vaccine rollout is not as fast as hoped would prove negative for Sterling.
Euro investors will be looking towards tomorrow’s release of Germany’s Consumer Confidence Survey for February.
If the outlook for the German economy – the largest in the Eurozone – continues to improve, then we would see the single currency on a more positive footing.
Euro traders will also keep an eye on their own coronavirus developments, with an increase in vaccine rollouts across the bloc proving positive for EUR.