EURGBP Extends the Bounce from 0.8500 Level

The EURGBP exchange rate was higher for a second session on Monday as the pair continues to bounce from support at the 0.8500 level. The Bank of England meets on Thursday and price action may be muted until then. Tomorrow will see the release of Eurozone retail sales figures and final readings of PMI numbers.

The EUR to GBP rate now trades at 0.8550 again and the UK is reportedly moving already to push booster jabs in the country.

Boris ditches the Amber list but may roll out new jabs

Boris Johnson has hinted that the UK government will ditch a plan to add a new “amber watchlist” category to the covid travel list, saying that he wanted the traffic light system to stay “as simple and user friendly as possible”.

Conservative MP Henry Smith, chair of the Future of Aviation Group, said that adding further complexity would damage the travel industry. An Amber watchlist “will just put more people off from booking international travel and will mean that there isn’t an August of meaningful travel to save travel and aviation sector jobs,” Smith said.

There was also concern about the prospect of a booster vaccine campaign in the UK starting as early as September.

“The real battle to beat Covid and prevent dangerous new variants is now taking place in countries where millions of people are facing deadly new waves of the virus with far less protection, so it’s alarming that the government is choosing to prioritise booster shots,” said Lis Wallace, at poverty rights group, the ONE Campaign.

“The only guaranteed way to reduce the risk of new variants undermining the progress that has been made is to get vaccines around the world as soon as possible. If we want to end this pandemic at home and abroad, then now is the time to ensure we beat this virus everywhere,” she added

Eurozone retail sales before BoE rate meeting

Wednesday could be a quiet session for the Euro versus pound with no economic data ahead and virus case rates in check.

Thursday will see the release of Eurozone retail sales figures, where the market is expecting to see a 4.5% increase on the month, versus the 9% bounce in June. That figure was driven by the economic reopening and provided a sharp bounce.

The big event for the week is Thursday’s Bank of England interest rate and policy setting update. The BoE will undoubtedly keep rates steady at the 0.1% level, but traders will be keen for an update on the bank’s policy for tapering or rate rises.

The post EURGBP Extends the Bounce from 0.8500 Level appeared first on Euro Rate Forecast.