GBP/EUR Exchange Rate Falls as French President Announces Month-Long Covid Lockdown
The Pound Euro exchange rate dipped today despite France battling rising numbers of Covid-19 infections. The pairing is currently fluctuating around €1.17.
French President Emmanuel Macron announced new strict coronavirus lockdown measures, with the nation now entering a month-long bout of new restrictions.
‘We did everything we could to make these decisions as late as possible, when they became strictly necessary. That is now.’
He also stated that new variants of Covid-19 had made the virus ‘more contagious and deadlier’.
In Eurozone economic news, today saw the release of Germany’s retail sales figure for February rise by 1.2%.
However, with the Eurozone’s largest economy suffering from rising Covid-19 infections, EUR traders are remaining cautious as the outlook for the German economy grows darker.
The Euro Pound exchange rate has, however, risen in spite of growing concerns for the European Union’s third-wave of coronavirus cases.
Pound (GBP) Falls Despite ‘Signs of Spring’ Appearing in UK Manufacturing Sector
The Pound (GBP) struggled today following the publication of the latest UK Markit Manufacturing PMI for March. The figure beat forecasts and rose from 57.9 to 58.9.
Rob Dobson, the Director at IHS Markit, was optimistic about the data, saying:
‘Signs of Spring have appeared in the UK manufacturing sector, with the PMI hitting its highest level in a decade. Growth of output, order books and employment all gathered momentum and optimism about the year ahead improved further.’
However, UK markets are remaining cautious after Prime Minister Boris Johnson urged caution this week as the EU’s rising number of Covid-19 infections could affect the UK in the weeks or months ahead.
UK Covid-19 cases continue to fall, however, with daily cases down by -1,553 against last week, while hospitalisations are also falling, with the figure at 4,176, down -1,247 versus the previous week.
UK market optimism also appears to be returning with the economy now poised to recover following the second wave of Covid-19.
Pound Euro Exchange Rate Forecast: Could Rising Covid-19 Cases in the EU Drag Down the Single Currency?
The Euro (EUR) could begin to suffer over the Easter Break as Europe faces an intensifying wave of Covid-19 cases.
The Pound Euro could head higher as we head into the Easter Break if the outlook for the UK’s economy continues to improve.