Two Swiss Banks Hike Pound Sterling vs. Euro Forecasts on UK Vaccine Success

Expectations for a drop in vaccine supplies to the UK in April comes as supplies to the EU jump significantly, a development that could apply some downside pressures to the Pound-Euro exchange rate.

The Norwegian Krone meandered along the middle of major currency road Tuesday but could accelerate through the 2021 rankings this summer as Europe frees itself from a coronavirus vaccination mire, a global economic upswing lifts oil prices and the Norges Bank raises interest rates before any of its peers.

The UK's current account deficit widened substantially in the final quarter of 2020 as the demand for goods imports increased and earnings on investments abroad were hit by the covid-19 crisis, confirming a fundamental achilles heal of Pound Sterling valuation remains intact.

The British Pound swung between gains and losses at the start of a new week that will welcome both a new month and quarter and therefore promises a volatile week of trading, although analysts note April is traditionally a strong month for the UK currency.

The Pound has a long established tendency to outperform most other major currencies in any given April month, according to research from Nomura and BofA Global Research, and if that pattern repeats this year it would make Sterling the 2021 outperformer all over again even if only for a brief period.

The British Pound recovered through the latter part of the previous week with analysts saying positive sentiment concerning the UK's vaccine-driven economic rebound remains the fundamental source of support for the currency.