- EUR / GBP dips from 0.9050 and returns below 0.9000.
- The pound appreciates against the euro as appetite for risk increases.
The euro’s bid to rise was limited to the 0.9050 zone again on Monday before retreating, extending its slide below 0.9000 with the GBP appreciating after news of the Pfizer vaccine.
GBP Appreciates COVID-19 Vaccine Hopes
The pound has been fueled by the broad appetite for risk sparked by the release of the first results of Pfizer’s COVID-19 vaccine and has recovered by more than 0.5%, bringing the euro back below 0.9000.
The pharmaceutical company announced today that the tests of its vaccine against coronavirus reveal that it is 90% effective. The market has reacted with a boost in risk appetite that has caused equity markets to spike. The Dow Jones index rose 4.25% while the main European indices have closed with gains of 4% to 8%.
On the other hand, the deadlock in Brexit negotiations keeps GBP longs in check. The lack of relevant progress after two weeks of intense negotiations continues to weigh on the pound, although talks are still continuing and the market remains quite optimistic about a last minute deal that will prevent a disorderly exit from the EU.
Credits: Forex Street
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