Coronavirus Vaccine Hope Boosts Pound to US Dollar Rate

The Pound experienced some significant gains on Monday following the news that the UK could receive a vaccine from Pfizer by the end of 2020. While this good news helped to bolster the currency, it was met with ongoing concerns as a result of Brexit with trade talks on-going without a breakthrough. However, news that unemployment levels have risen this morning might put a dent in GBP exchange rates this morning. Despite this, the pound rounded the day off at 1.1136 against the Euro and 1.3167 against the US Dollar according to the Foreign Exchange Market.

There was very little movement for the Euro yesterday despite market sentiment improving. While investors welcomed the news of a vaccine, the current situation of rising cases still means that a double-dip recession is highly likely. However, the latest ZEW surveys could see additional pressure placed on the Euro today as additional lockdown measures are going to impact economic sentiment.

Investors moved away from the US Dollar yesterday after risk sentiment improved after news of a potential vaccine being ready by the end of the year. However, today could be a similar story, placing further pressure on the US Dollar although the latest job opening figures could provide some support for the currency.

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