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Great Britain Pound Mixed After Economic Data, Vaccine Export News

February 1, 2021 at 21:45 by Vladimir Vyun

Many 20-pound notesThe Great Britain pound was mixed on Monday, rising against some peers and falling versus others. The majority of macroeconomic reports released in Britain during the trading session beat expectations. Also supporting the sterling was the news that the European Union will not restrict vaccine exports to the United Kingdom.

Ursula von der Leyen, President of the European Commission, announced that Great Britain will not be included in the list of countries with tighter restrictions on exports of the COVID-19 vaccines. The announcement contradicted the previous statement from the EC about tighter border control on vaccines shipped to Northern Ireland from the European Union. Ursula von der Leyen said after the talks over the phone with Britain’s Prime Minister Boris Johnson:

We agreed on the principle that there should not be restrictions on the export of vaccines by companies where they are fulfilling contractual responsibilities.

As for macro releases, the most important of them was the seasonally adjusted IHS Markit/CIPS UK manufacturing Purchasing Managers’ Index, which showed a decline to 54.1 in January from 57.5 in December according to the final estimate. Market participants were expecting the same 52.9 reading as in the preliminary estimate. The reading above 50.0 level means that the industry continued to expand, albeit at a slower pace. The report commented on the result:

The upturn in the UK manufacturing sector slowed sharply at the start of 2021. Output growth eased and new orders fell slightly as producers faced weaker inflows of new export work and temporary supply-chain disruptions caused by COVID-19 restrictions and transport delays (especially at ports) following the end of the Brexit transition period.

GBP/USD fell from 1.3703 to 1.3663 as of 21:44 GMT today after rising to the high of 1.3758 intraday. EUR/GBP declined from 0.8847 to 0.8826, touching the low of 0.8804 during the trading session. GBP/NZD was little changed at 1.9085 after touching the daily maximum of 1.9150 and the minimum of 1.9050.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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