European session review: GBP mixed amid lingering optimism about vaccine-driven recovery in UK

GBP traded mixed against its major rivals in the European session on Monday amid lingering optimism that a successful vaccination rollout in Britain would bring an economic recovery from coronavirus damage in the months ahead.

The pound rose JPY,CHF andCAD, changed little against USD, EUR and NZD and fell against AUD 

According to Sky News, more than 17.5 million people have received their first dose of a vaccine since the UK's COVID-19 vaccine rollout started in December 2020, and 615,148 have received their second dose. Meanwhile, coronavirus cases and deaths are declining. The UK's government targets to offer all adults the first dose by the end of July.

The speedy vaccine rollout provided encouragement in the markets that the UK's economy will be able to rebound more powerful than its European peers.

In addition, the pound remained supported by the fact of the UK averted a no-deal Brexit by reaching the last-minute trade deal with the EU at the end of 2020 as well as signals from the Bank of England (BoE) that negative interest rates are not to be implemented any time soon.

Market participants are awaiting the announcement of the “roadmap” out of lockdown for England by the prime minister (PM) Boris Johnson later today. The PM's office said on Monday that the criteria to ease lockdown were being met, so the first step of the unlocking plan would proceed from March 8.