EUR / GBP trapped between 21 and 50 DMA at 0.95

• The EUR / GBP is within the 0.95 range and remains trapped between the 21 and 50 DMA.
• The couple is likely to continue to be boosted by the Covid-19 lockdown and vaccination developments on both sides of the English Channel.

For most of the last 24 hours, the EUR/GBP it remained in a range between approximately 0.9020 and 0.9050 and is practically flat on the day. Traders are watching the pandemic unfold on both sides of the English Channel, following Covid-19 concerns in the UK as the country entered a tighter lockdown on Monday, the EUR / GBP supported the Monday and lifted the pair above the 0.9000 level.

At the moment, the pair appears to be trapped between its 21- and 50-day moving averages that sit at 0.90574 and 0.90126 respectively, the former offering resistance during the European morning and the latter supporting price action from the Asia Pacific session. With Brexit out of the way, Covid-19, lockdowns and the vaccination race appear to be among the dominant themes that will propel the EUR / GBP this week and in the months to come.

UK Covid-19 Update …

The UK Chancellor of the Exchequer on Tuesday announced one-time supplemental grants for retail, hospitality and leisure businesses worth up to 9,000 per property with the goal of helping businesses through spring. The additional support comes after British Prime Minister Boris Johnson’s announcement last night that Britain will enter a tighter lockdown until at least mid-February to help control the virus.

Meanwhile, at a press conference with British Prime Minister Boris Johnson and his chief medical advisers, the government announced that there would now be daily updates on the number of people vaccinated against the virus and that one in four people over the age of 80 years has already been injected. The government reiterated that although it is possible to relax the blockades as of mid-February, uncertainties persist.