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Pound (GBP) Rises as Covid-19 Vaccines Buoy UK Market Mood

Published: 21 Jan at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,

Pound (GBP)

The Pound rose today as the UK’s Covid-19 vaccination programme has buoyed hopes for the UK economy’s recovery in the months ahead.

Matt Hancock, the British Health Secretary, also announced that the UK is now engaged in vaccinating 200 people every minute.

As a result, GBP investors are becoming increasingly confident that the UK could begin to ease its lockdown by April.

However, Prime Minister Boris Johnson has since failed to rule out that UK lockdowns could be in place until summer.

Euro (EUR)

The Euro fell today after Germany announced that it would extend its national lockdown as Covid-19 infections continue to rise throughout the Eurozone.

Added to this, demand for the safe-haven single currency has fallen because of US President Joe Biden’s Presidential Inauguration last night.

As a result, global markets are now more confident about the economy because of expectations that the Biden Administration will announce further and more substantial fiscal stimulus.

US Dollar (USD)

The US Dollar has also been undermined by shrinking demand for the safe-haven ‘Greenback’.

Last night’s US Presidential Inauguration has buoyed confidence in the US economy – the largest in the world – and as a result, this has limited appeal for the US Dollar as investors seek out riskier assets.

Today also saw US jobless claims decline to 900,000, which has also boosted confidence in the US economy.

Canadian Dollar (CAD)

The Canadian Dollar rose today following the Bank of Canada’s (BoC) recent policy meeting, in which it suggested that it would look to taper quantitative easing in the future.

Additionally, the oil-sensitive ‘Loonie’ has benefited from rising crude prices as the outlook for the global economy improves.

Australian Dollar (AUD)

The Australian Dollar has benefited from a mixture of improving risk appetite and an improvement in the latest Australian jobs figures.

New Zealand Dollar (NZD)

The New Zealand Dollar has also benefited from risk-on trade today, with demand for the risk-sensitive ‘Kiwi’ rising following US President Joe Biden’s inauguration last night.

As of Thursday, 21st January 2021, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1285, GBP USD exchange rate was 1.373, GBP AUD exchange rate was 1.7688, GBP NZD exchange rate was 1.9062, and GBP CAD exchange rate was 1.734.
Laura Parsons About Author: (360 Posts)Laura works in the financial sector as a currency analyst, studying the latest global economic developments and assessing their impact on the foreign exchange market. Laura uses her currency knowledge to write articles focussing on market movements and trends for several independent financial websites.

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