Euro 'shunned' by investors: Single currency not popular as ailing bloc lags behind U


EU at ‘crunch point’ over future of the Eurozone says expert

Jeremy Thomson-Cook, Chief Economist at international business payments specialist Equals Money, was speaking at a time when countries throughout the EU27 – as the 19 states which are also members of the eurozone – are struggling to contain a third wave of . Their progress has been hampered by the bloc’s sluggish rollout, which has seen 16.54 doses administered per citizen as of yesterday – less than one-third of the UK’s total, 51.58.

French President Emmanuel Macron

French President Emmanuel Macron is under pressure as a result of the situation (Image: GETTY)

Euro eurozone

The euro is not popular at the moment, said Mr Thomson-Cook (Image: Express)

“The decision by the Macron government to essentially shutting the country for a month – including schools going into the Easter holidays – has highlighted the disparity in progress against the virus between France and the US/UK.

“Inflation data yesterday also failed to haul the euro higher; without data or vaccine support there is little reason to hold the single currency if you don’t need to.”

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By contrast, he added: “The key for sterling’s strength in Q1 was the vaccination program and the timetable for reopening.

READ MORE: Macron admits ‘I’ve made mistakes’ but then blames UK for lockdown

Boris Johnson

Boris Johnson, the UK’s Prime Minister (Image: GETTY)

“It will be the same in Q2 and any delays to the program of opening pubs, bars, restaurants, and shopping centres will be a blow to the market’s confidence in sterling.

“Updates from the government are due on April 5, May 10, and June 14 ahead of changes a week later from those dates.”

Sterling gained about 4.8 percent versus the euro in the first quarter of the year, which analysts attributed mostly to the UK’s rapid vaccine rollout – one of the fastest in the world – as well as relief at the start of the year that a no-deal Brexit had been avoided.

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Emmanuel Macron

Emmanuel Macron confirmed the lockdown in a televised address yesterday (Image: GETTY)

Paris France

Parisians enjoy the weather prior to Mr Macron’s announcement (Image: GETTY)

Coronavirus vaccination rates compared

Coronavirus vaccination rates compared (Image: Express)

“We’re pencilling in the outperformance continuing through the next quarter.”

Stuart Cole, chief macro strategist at Equiti Capital in London, added: “If things carry on the way they are now, I think we could see EURGBP trading around 83p by the end of the year.”

A revised manufacturing survey showed that British factories rode a wave of orders in March and prepared for a gradual reopening of the economy from COVID-19 shutdowns by hiring staff at the fastest rate since 2014.

Emmanuel Macron

Emmanuel Macron factfile (Image: Express)

As of 11.08 GMT, the pound was flat against the dollar at $1.3776.

Versus the euro, it was down around 0.1 percent at 85.2p per euro.

UBS said in a note that it favours sterling versus the dollar, and had raised its forecast for sterling-dollar to $1.49 by the end of the year, from $1.46.

Lockdown restrictions are gradually being lifted in England, with more substantial changes, including the re-opening of non-essential retail and outdoor hospitality settings, due on April 12.





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