GBP/EUR Exchange Rate Steady as UK Government to Announce Lockdown Extension

GBP/EUR Exchange Rate Flat Ahead of UK Lockdown Extension 

The Pound to Euro (GBP/EUR) exchange rate is stuck in a narrow range this morning as markets await the approval of an extension to the UK’s coronavirus lockdown. 

At the time of writing the GBP/EUR exchange rate is trading at around €1,1479, virtually unchanged from this morning’s opening levels. 

Pound (GBP) Holds Steady as Investors Brace for Lockdown Extension 

The Pound (GBP) is in a holding pattern against the Euro (EUR) and the majority of its other peers this morning as market await the announcement of an extension to the UK’s coronavirus lockdown. 

Foreign Secretary Dominic Raab is widely expected to announce the current restrictions will remain in place for at least another three weeks at today’s daily coronavirus briefing. 

However, perhaps more pressing for GBP investors will be what the UK government has to say about a lockdown exit strategy as Labour leader Keir Starmer has called for more details on when and how restrictions will be eased. 

This comes amidst reports that in the absence of Boris Johnson, who is still recovering after being in intensive care last week, efforts to coordinate a concrete exit plan have some up short. 

So far the only official government message has been that it is ‘too early’ to talk about exiting the lockdown, although the chief medical officer for England, Prof Chris Whitty has suggested we have ‘probably reached the overall peak’ of cases. 

Some experts have warned that unless there is a significant improvement in the number of tests being done then it will be very difficult to start lifting the current restrictions. 

Reopening of Europe Offers Limited Support to Euro (EUR) Amidst Lack of EU Unity on Issue 

At the same time, the Euro (EUR) has found some modest support this morning as EUR investors welcome signs that some European countries are beginning to look at lifting some coronavirus restrictions. 

So far we have seen Spain, Italy and Austria allow some non-essential workers return to work while others have started to allow some younger children return to school. 

However, this has once again highlighted the lack of EU unity over the coronavirus crisis as most countries appear to be acting on their own and are playing little regard to the guidelines for coordination action published by the European Commission.