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The booster rollout and the pound

Daily Currency Update

GBP - British Pound

The UK will look to accelerate its booster vaccination programme in a bid to avoid implementing further COVID-19 restrictions. The pound could be supported over the coming weeks as the UK's vaccine booster rollout is more advanced than those in the Eurozone and US.

If the UK can avoid another wave of COVID-19, the Bank of England may look to raise interest rates, a move which could provide GBP strength.

Key Movers

Today, foreign exchange market traders will likely focus on inflation data from Europe. Analysts expect Euro Area Inflation Rate to increase by 0.1% month-over-month in November. On a year-over-year basis, Euro Area Inflation Rate is projected to grow by 4.5%. Euro Area Core Inflation Rate is expected to increase by 2.3% year-over-year.

Unless the Core CPI print beats the market expectation by a wide margin, the European Central Bank is likely to stick to the narrative of no interest rate hikes in 2022 for now, which may mount pressure on the euro.

Expected Ranges

  • GBP/USD: 1.3335 - 1.3385 ▲
  • GBP/EUR: 1.1735 - 1.1785 ▼
  • EUR/USD: 1.1335 - 1.1385 ▲