Euro-to Pound (EUR/GBP) losses during the first quarter of 2021 were driven by the UK vaccine programme, but HSBC now expects a reversal as the EU performance improves strongly. The bank recommends buying the EUR/GBP exchange rate with a target of 0.8888. EU to Take-up the Vaccine Baton, Euro to Strengthen HSBC notes that the initial optimism over the UK vaccine programme was justified, but this has now been priced in. “The commendable vaccine rollout has been so well covered, it is hard to know how it might add further to GBP’s appeal.” HSBC now expects that attention will switch towards the EU programme and there ... (full story)