The rapid progress of the UK's vaccination efforts push the GBP to a new high; Eurozone data gives the euro a lift.
Optimism over the efforts of the UK government's aggressive immunization program has helped push the pound sterling higher against its major counterparts. The pound recorded a 2½-year peak versus the greenback, and a 9-month high against the euro during London trade on Tuesday. Economists believe that the efforts to bring the economy back from the brink of a recession will keep the currency elevated relative to its peers. Britain recently experienced a large decline in output. Records show it to be the worst in three centuries, but expectations are strong that there could well be a robust recovery given the government's efforts.
In London trading as of 10:57 am, the EUR/GBP was trading at 0.8729 pence, up 0.0837%; the pair has ranged from a trough of 0.87052 pence to a peak of 0.87347 pence. The GBP/USD was higher at $1.3933, a gain of 0.1992%, off the session high of $1.39526, while the low was recorded at $1.38974. The GBP/JPY was higher at 146.656 yen, a gain of 0.1345%, with the pair hitting a high in the session of 147.323 yen.
Data Gives Euro a Lift
In the Eurozone, upbeat economic data helped to push the euro higher. Eurostat reported earlier that preliminary 4th quarter seasonally adjusted GDP came in at -0.6% against an expected -0.7% on a quarter-on-quarter basis, and -5% versus a forecasts of -5.1% on a year-on-year basis. The latest ZEW surveys were also better than anticipated. In Germany, while the current situation survey was worse than analysts had predicted with a reading of -67.2 against a forecast of -67, the economic sentiment survey was markedly improved at 71.2 against an expected 59.5. That alone helped the Eurozone ZEW survey on economic sentiment to be better than forecasts with a reading of 69.6 in February, against the 57 that was expected. As a result, the euro was pushed higher, with the EUR/USD trading at $1.2163, a gain of 0.2927%, off the session high of $1.21676.