The pound is gaining ground to the euro during early Wednesday trading, on what is now the third consecutive day of losses for the single currency. The success of the UK’s vaccine rollout, especially when compared against a clunky European process that has so far delivered unsatisfactory results, raises concerns that the eurozone’s return to normality may take longer than some predicted, and justifies greater optimism over the speed of the British post-pandemic recovery. Sterling is finding support, with the prospect of no-deal Brexit no longer weighing on the currency and lower likelihood of the BoE introducing further interest rate cuts, which could drive further gains against the euro.
