GBPEUR: EU Causing Frustration with Shellfish Exports

The GBPEUR exchange rate is trading near above 1.1450 level on Monday as the UK benefits from its ongoing vaccination campaign. The country saw a new milestone hit over the weekend with 15 million vaccines now being administered a day ahead of schedule.

The news puts the UK on track for a reopening of the economy in March as expected. Boris Johnson is due to make a statement later today on the vaccines, but may wait until his “roadmap” a week later to discuss any real changes to lockdowns.

UK and EU Square off on Fishing Already

The UK and European Union are already seeing a spat with fishing rights after the EU slapped a ban on shellfish exports just weeks after the trade agreement. New paperwork and checks have caused some disruption in exports of fresh fish and seafood to the EU.

David Collins, a law Professor at University of London, told the Daily Express that the move showed the EU was “not interested” in fulfilling its obligations on trade. Fishing was a key hold up in the Brexit talks, but it seems that the area will see contention in the years ahead due to the passion on both sides of the Channel. January saw seafood hauliers protesting the Brexit fishing deal by stacking lorries in central London.

Industry bodies are calling fro government action, which is an embarrassing situation to be in after three years of talks on a Brexit agreement.

Think Tank Debunks Amsterdam Trading Victory

News last week saw the City of London overtaken by Amsterdam as the largest trader of shares in Europe, but volumes in the capital are still five times larger than the whole of the EU combined, a think tank has said.

New Financial has noted that the numbers are inconsequential on growth and are a required factor of leaving the EU:

“The numbers look big but the economic impact is limited. Back of the envelope estimate: €6.5billion (£5.7bn) in daily trading volumes in EU equity trading switching from London translates into maybe £50million (€57m) in annual revenues, max £5million (€5.7m) in lost tax.”

The Think Tank added that derivatives and currency trading is much larger, saying, “Volumes in London are roughly 75 times larger, and roughly five times as big the whole of the EU combined.”

The GBPEUR exchange rate will be driven by data this week as the Eurozone sees GDP figures for Q4, while the UK releases its latest inflation figures. A further boost for sterling could see it test the 1.1500 level, which was a high for the pair in April 2020.

Get in touch to discuss these factors in further detail to find out more about how your upcoming currency exchange could be impacted.

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