A proposed ban or limit on vaccine exports to the UK from the EU has been credited by numerous foreign exchange analyst we follow as being behind a recent decline in the value of the British Pound, however such a move is being overblown says Stephen Gallo, European Head of FX Strategy at BMO Capital Markets.
The Pound-to-Euro exchange rate is well supported on the charts and likely has scope to reach 1.18 over the coming weeks but must first navigate a deluge of economic data and speeches from Bank of England (BoE) rate setters.
Consumer and business optimism drive economies forward and new polling shows the UK now has this key ingredient of growth in abundance, which could in turn underpin the British Pound's current trend of outperformance.
The Pound-to-Euro exchange rate has remained ascendant and on course to reclaim the 1.17 handle despite widespread volatility in global markets and could be aided over the coming days by a possible stabilisation of risk assets and supportive rhetoric from the Bank of England (BoE) and European Central Bank (ECB).
The Pound-to-Euro exchange rate ended the week on its back foot amid further turbulence in the American bond market but kept a toehold on the doorstep of 1.17 and may overcome that on route to new highs this week, as the diverging policy stance of the Bank of England (BoE) vindicates Sterling's rally.