Market report: GBP sinks to seven month low
The pound fell to a seven month low against the euro on Tuesday. This followed the Bank of England’s (BoE) Chief Economist Andy Haldane announcing he would be leaving the BoE’s Monetary Policy Committee (MPC).
Haldane is famously ‘hawkish’ and favourable towards increasing interest rates. Something seen as a positive for the pound.
This isn’t the first time Haldane has directly impacted the currency. In February, he actually strengthened the pound after claiming economists and markets might be underplaying the extent of looming inflation in the UK.
Without his hawkish influence on the MPC, it will be interesting to see whether they now delay increasing interest rates.
The euro is building momentum as investors turn their attentions back towards the currency. After a slow start, the Eurozone’s vaccination program is finally kicking into gear as it moves past the delays and supply shortages that had previously hindered it.
Key states like France, Germany and Italy have now reported an increase in vaccination rates over the past week.
France delivered 510,000 doses last Friday alone. While Germany have now provided the first jab to 12.7m people. That’s a quarter more than last week.
Assuming there are no issues, anyone who’s high risk, over 75 or working in health care should be vaccinated by the end of April.
The euro now looks likely to more than make back the losses it made earlier in the year.
3:00pm – EUR – European Central Bank President Christine Lagarde speaks
5:00pm – USD – US Federal Reserve Chair Jerome Powell speaks
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