Vaccine rollout helps GBP outpace EUR – but will it last?

By Matthew Boyle

With Brexit fast becoming a distant memory it seems the Pound has started to both move onwards and upwards. Since the start of 2021 it has gained around 6 % against the Euro and 4% against the US Dollar.

Without doubt the removal of the uncertainty and anxiety surrounding Brexit and leaving the EU has enabled the Pound to find its feet and some renewed strength.

In no small way this has been helped by the pace of the UK vaccination program- greatly outperforming Europe and so paving the way for a faster economic recovery .

Whilst the long term outlook for GBP remains good, in the short term analysts are warning of a potential correction or period of consolidation for rates – not uncommon after fast gains over a short period of time.

And whilst currently things are looking positive in the fight against Covid, we mustn’t rule out that this can change should for example a new strain appear that is vaccine resistant.

As such those with upcoming purchases may like to consider taking advantage of the current highs – 12 months plus for GBP>EUR and close to 5 year pre-Brexit highs for GBP>USD.

Without doubt it would at least be prudent to consider a cost averaging approach to at least remove some of the risk in what are still uncertain times.

When the travel restrictions eventually lift will we see a tidal wave of overseas buyers and consequently house prices rise?

And with an increase in travel comes the risk of a new strain and lockdown. Should that happen would the gains made by the Pound be lost?

With GBP>EUR rates currently so good and overseas property prices so cheap, now could well be the time to take advantage.

Speak to your broker today for some friendly and professional guidance on how to get the most out of your currency transfer.

The Week Ahead


13.00     USD       Fed Chair Powell speech

13.00     EUR       German Buba President Weidmann Speech


07.00     GBP       Unemployment rate and claimant count

11.50     GBP       BoE Governor Bailey Speech

16.00     USD       Fed Chair Powell Testifies

23.50     JPY         BoJ Monetary policy meeting minutes


07.00     GBP       CPI data

08.30     EUR       German Markit PMI

09.00     EUR       EU Markit PMI

09.30     GBP       Markit Services PMI

12.30     USD       Durable Goods orders

14.00     USD       Fed Chair Powell Testifies


00.00     EUR       European Council meeting

08.30     CHF       SNB interest rate & Monetary policy announcement

09.30     GBP       BoE Governor Bailey Speech

12.30     USD       GDP Data


00.00     EUR       European Council meeting

07.00     GBP       UK retail sales

09.00     EUR       German business climate data

12.30     USD       Personal Spending data